Camping World to operate 70 or more Gander Mountain retail stores
Recreational vehicle (RV) retailer Camping World Holdings has entered an agreement to acquire certain assets of Gander Mountain Company and its Overton’s boating business.
An asset purchase agreement to this effect has been entered by Camping World’s indirect subsidiary CWI.
This development comes after CWI participated in a bankruptcy auction for certain assets of Gander Mountain and Overton’s late last month, and was selected as the winning bidder.
Earlier this month, the US Bankruptcy Court for the District of Minnesota also approved the transaction.
Under the asset purchase agreement, CWI will purchase Overton's inventory for approximately $15.6m based on estimates available as of 28 April.
An additional $22.2m has been allocated for certain other assets such as the right to designate any real estate leases for assignment to CWI or other third parties, as well as the Gander Mountain and Overton's e-commerce businesses, fixtures and equipment for Overton's retail and corporate operations among others.
Camping World chairman and CEO Marcus Lemonis said: “After reviewing the stores in more detail since our successful bid in the bankruptcy process, our current goal is to operate 70 or more, locations subject to, among other things, our ability to negotiate lease terms with landlords on terms acceptable to us and approval of the Bankruptcy Court.
“The current liquidation of the existing Gander Mountain inventory will allow us to start with a clean slate of what we consider the appropriate mix and level of inventory, including the addition of Camping World and Overton’s offerings where appropriate.”
The company also plans to finance the acquisition, including the re-opening and initial working capital needs of 70 or more retail locations and certain liabilities with available cash on hand, along with additional capital from future equity or debt financings.
Camping World operates 125 retail locations in the US.