Camping Word Details Buyout of Gander Mountain
On April 28, 2017, Camping World was chosen as the winning bidder at a bankruptcy auction for certain assets of Gander Mountain and its Overton's boating business. Pursuant to Camping World's winning bid, Camping World will purchase the Overton's inventory for an amount equal to cost, which as of the date of the auction was approximately $15,600,00, plus $22,150,000 for certain other assets, such as the right to designate any real estate leases for assignment to Camping World or other third parties, other agreements Camping World elects to assume, intellectual property rights, operating systems and platforms, certain distribution center equipment, the Gander Mountain and Overton's eCommerce business, and fixtures and equipment for the Overton's retail and corporate operations.
Camping world will also assume certain liabilities, such as cure cost for leases and other agreements it elects to assume, accrued time off for employees retained by Camping World and retention bonuses payable to certain key Gander Mountain Employees. The United States Bankruptcy Court for the District of Minnesota will consider the approval of the Camping World winning bid and the liquidators winning bid at a sale hearing that is currently scheduled for May 3, 2017 at 1:30pm.
Marcus Lemonis, Chairman and CEO of Camping World, stated, “the Gander Mountain and Overton customer and their affinity to the outdoor lifestyle are the perfect complement to our Camping World business. The structure of our deal provides much flexibility and will not only allow us to refine the inventory selection and select only those stores which are profitable or we believe have a clear path to profitability, but will also allow us to immediately offer our comprehensive portfolio of services, protection plans, products and resources to the existing Gander Mountain and Overton customer base and in stores in which we elect to operate. While we are obligated to assume a minimum of seventeen leases, our designation rights will allow us to operate stores and retain employees at a number to maximize profitability.”
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