ST. PAUL, Minn. -- Gander Mountain announced Friday that its business has filed for Chapter 11 bankruptcy and 32 of its underperforming stores, including three in Minnesota, 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.
The chain has a store at 11655 W. Hillsborough Ave., in Tampa, but it is not scheduled 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.
Full list of store closures:
Alabama (4) – Gadsden, Mobile, Montgomery, Tuscaloosa
Georgia (3) – Augusta, McDonough, Snellville
Illinois (3) – Champaign, Algonquin, Springfield
Indiana (2) – Merrillville, Greenfield
Minnesota (3) – Rogers, Mankato, Woodbury
New York (1) – New Hartford
North Carolina (2) – Raleigh, South Charlotte
Tennessee (1) – Chattanooga
Texas (10) – Houston, Killeen, Laredo, Lubbock, Round Rock, San Antonio, Sugar Land, Texarkana, Waco, West Houston
West Virginia (1) – Charleston
Wisconsin (2) – Eau Claire, Germantown
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