Sportsmans Warehouse files Ch. 11

[Mtnman1830]

Use your gift cards now.


http://www.ksl.com/index.php?nid=148&sid=5931332

Sportsman's Warehouse files bankruptcy
March 22nd, 2009 @ 5:05pm
MIDVALE -- Sporting goods store Sportsman's Warehouse has filed for Chapter 11 bankruptcy protection.

The Midvale-based company is worth about $436 million, and it owes its creditors $452 million.

Sportsman's CEO said in court papers filed Saturday the company was "another retailer victim of the worldwide-global recession."

Earlier this month, the company announced it was closing 23 stores across the country and selling another 15. No Utah stores are affected.

[RugerShooter]

If you have any Sportsman's gift cards I would get over there and spend them. As of right now they are still accepting them.

[Sombeech]

If I do have any, I'll wait too long. Then I'll just ask my giftors for a WalMart card instead. :haha:


PS, it's hard to think they're having a tough time with all the guns and ammo flying off the shelves.

[DiscGo]

That is too bad. I like Sportsman Warehouse. I prefer them to Cabellas by far!

[Iceaxe]

I was in Cablas last Saturday.... they were stacked 5 deep at the gun counter and the store was clogged with people spending money....

That is how Sportsmens Warehouse used to be... Sportsmen's has been in trouble for a while. They haven't stocked most things I need for a long time...

:cool2:

[James_B_Wads2000]

:roflol:

[tapehoser]

Just so we're clear, Chapter 11 is a "reorganization" of debt, which means the company is not closing it's doors yet. If they can get their crap together, they might still be around in a few years. Chapter 13 is similar, but Chapter 7 is a complete shutdown of the company where an arbiter of sorts comes in and sells all company assets and re-distributes the moneys gained to the creditors.

I haven't been happy with Sportsman's for a while. I think their position is more due to bad management and marketing than it is bad economy.

[Scott Card]

I was in Cablas last Saturday.... they were stacked 5 deep at the gun counter and the store was clogged with people spending money....

That is how Sportsmens Warehouse used to be... Sportsmen's has been in trouble for a while. They haven't stocked most things I need for a long time...

:cool2:True that. The gun counter is almost empty at the Provo Sportsman's Warehouse. They have little ammo also. I too like Sportsman's but I have been forced to go to Cabelas just to get what I need/want.

[BruteForce]

That is too bad. I like Sportsman Warehouse. I prefer them to Cabellas by far!

Agreed. I hope they come out of Chapt. 11 intact, but I'm pessimistic.

[RedMan]

I think think they will be fine.
They have secured 85M in DIP financing from GE Capital and have exit financing lined up.

They only owe 16M more than assets.

The 85M means they will be able to pay cash for product which is huge.
Thats largely why they look stripped inside, many vendors cut off their credit line a while back so they have had a hard time getting product to sell.

You don't get many CH11s that clean.

[Iceaxe]

I haven't been happy with Sportsman's for a while. I think their position is more due to bad management and marketing than it is bad economy.

I totally agree..... I see this all the time with private companies... the place becomes successful and the owners get caught up in playing and spending money and forget to mind the business.....

:cool2:

[ilanimaka]

I agree with you there, Ice. It tends to go to their head and they see the business as a cash cow to just milk. They also forget to take care of that cow and it dies off. I thought I had a cash cow once, but she turned out to be as broke as I was but was still a cow. :twisted: :bootyshake:

If I had a business turn into a booming success like that, the first thing I'd do is sell it. Then I'd start my own bank, steal everybody's money, get my bailout money from the govt, and retire to some remote tropical island after getting my enormous severance package. AIG, here I come! :roll:

[RedMan]

I think the primary problem was expanding too fast, debt piles up quickly.