How do you go from being one of the best most successful business for outdoor gear to staring bankruptcy in the face? Well, according to a Reuters report, Gander Mountain took out substantial loans and may not be able to pay them back. Let's take a quick look at the numbers.

The company has a $30 million loan, and revolving credit lines for $25 million and $500 million, according to Thomson Reuters data. It is not clear how much money in the credit lines Gander Mountain has yet to draw down on.

Aggressive expansion always seems to be the albatross that drags down the big brands. One has to wonder why any company would try such an aggressive expansion in this retail climate! Stores everywhere are starting to bite the dust as shoppers go online to purchase their goods direclty from the manufacturer. The online marketplace has blown open the options for the average consumer and location is no longer a limitation and prices are now more competitive than ever.

Even large stores that are in no particular niche and have been around forever are now facing drastic cutbacks so it seems the threat for niche stores is even greater.

Gander Mountian had this to say about the announcement:

Gander Mountain is the nation’s largest outdoor retail network with 162 specialty stores across 26 states. We are a fully integrated Omni-Channel retailer dedicated to servicing the hunting, camping, fishing, shooting sports, and outdoor products markets. As ‘America’s Firearms Supercenter™,’ we are a market leader in the shooting sports category with an extensive offering of firearms, ammunition, and accessories.

Like most retailers, we are subject to normal economic cycles, changes in our industry and shifts in consumer demand that require us to adapt our business accordingly. It’s been that way since 1960, when we started out as a catalog company in small-town Wisconsin, and it remains the case today. It is this constant adaptation and desire to offer our customers the best selection, best value and best service that has been our hallmark for generations.

Gander Mountain and its ownership group have undertaken a best-practices approach to review our strategic options specific to positioning the company for long-term success. When we engage in such a review we often seek information and advice from external advisors to inform our decisions. To assist in this process, we have retained Houlihan Lokey as independent advisors and we are confident that the outcome of the review will identify the right go-forward strategy. In the meantime, our Gander Mountain stores and gandermountain.com remain the place to go for all of our customers’ outdoor adventure needs.

Source: Reuters