Gander Mountain announced that it has filed a stalking horse bid by a joint venture comprised of Gordon Brothers and Hilco Merchant Resources, two firms specializing in liquidations, to purchase substantially all of its assets.
The filing was made as part of the company’s proceedings under Chapter 11 of the United States Bankruptcy Code. The hunt & fish retailer filed on March 10.
In its filing, the company noted that the stalking horse agreement and bid procedures were designed to facilitate a seamless sale of the company as a going-concern. The agreement satisfies one of the company’s planned milestones and ensures operational continuity necessary to support a successful sale. Gander Mountain believes it has substantial market value to strategic buyers and that its agreement provides a competitive baseline to evaluate subsequent offers and maximize value to its stakeholders. The company and its advisors remain in discussions with a number of interested parties that are engaged in due diligence in an effort to finalize proposals, offers and bids.
In March, the U.S. Trustee in the Gander Mountain bankruptcy case objected to Hilco, LLC being retained as the liquidator for its initial closing of 32 stores because the same parent as Hilco, LLC may submit a stalking horse bid for the retailer’s remaining assets. Tiger Capital Group and Great American Group wound up being hired to close those doors.
The agreement was filed in the U.S. Bankruptcy Court for the District of Minnesota, case numbers 17-30673 and 17-30675. More information about Gander Mountain’s restructuring is available online at donlinrecano.com/gmc.
Court filings and claims information are available at the U.S. Bankruptcy Court website, mnb.uscourts.gov/.
Photo courtesy Gander Mountain
