ST. PAUL, Minnesota - Gander Mountain announced Friday that its business has filed for Chapter 11 Bankruptcy and 32 of it’s underperforming stores will close in the next several weeks. .
According to a news release, the company said the action is the result of an in-depth review of the company’s strategic options undertaken in recent months to preserve the value of the company and position it for a long-term success.
Gander Mountain expects to close 10 of its 22 Texas stores, The Dallas Morning News reported. The Waco and Killeen locations are on the list to close.
The growth of online sales has caused the company to experience challenging traffic patterns and shifts in consumer demands.
After failed attempts to improve the efficiency of the company’s retail operations and support functions, the underlying financial impact from underperforming stores and unproductive, excess inventory hampered efforts to create a sustainable path forward.
A strategic review done by the company found in order for the company to have profitable growth, a narrowly focused and lower cost operating model is necessary. However, the review also found that Gander Mountain does not have the financial capacity or time to reset its operations to fully implement the new model. The best available model for the business is to sell the company on a going-concern basis.
Gander Mountain expects to conduct normal business operations during the pendency of its restructuring. Employee pay will continues to arrive on time, benefits will remain in place, and retirement accounts are intact and protected.