Four years after entering the U.S. market to snap up 15 Sportsman’s Warehouse stores in the Pacific Northwest to extend its Wholesale Sports retail chain into the Pacific Northwest, Ablerta-based UFA Co-Operative Limited of Canada has divested the operation.


The co-op has agreed to sell 10 of its Wholesale Sports USA locations  in Montana, Idaho, Oregon and Washington back to Sportsmans Warehouse and sell four others to Alamo Group, a California real estate investment firm. Wholesale Sports has agreed  to exit the U.S. market as a condition of the sale.

 

We entered the U.S. retail market as part of a long-range diversification strategy, UFA President and CEO Bob Nelson wrote in a March 3 letter to members of UFA, which stands for United Farmers of Alberta. Over the past few years we have made significant progress and worked hard to turn the business around and we are exceptionally proud of the efforts that have been made.

UFA will continue to operate our Canadian Wholesale Sports network, which have been strong and profitable.

 

Much like off-farm income, a diversified business model that supports our overall goal of enabling rural and agricultural success is necessary for our co-operative to thrive, the letter continued. There is significant upside and potential in the outdoor adventure industry.
I would like to take the opportunity to commend everyone on both sides of the border who worked with us to increase the value of our stores in the U.S., Nelson wrote. While we are sad to say good-bye to our U.S. colleagues, we believe this is the right move at the right time for our co-operative.

 

The transaction includes all of the shares and assets of Wholesale Sports USA, but does not affect Wholesale Sports Canada or the Canadian Wholesale Sports stores, which UFA acquired in 2008.

Sportsmans Warehouse is in the process of rebranding former Wholesale Sports locations in Bend, Portland and Salem in Oregon; Helena, Bozeman and Missoula in Montana and Kennewick, Sliverdale, Vancouver and Federal Way in Washington. That will boost the number of Sportsman’s Warehouse stores from 36 to 46.

 

We are very pleased to increase our presence in the Pacific Northwest market in such a significant manner, said John Schaefer, Sportsmans Warehouse CEO. This acquisition is in line with our business plan, promoting stable growth that will benefit our company, our vendors, and most importantly, our loyal customers. It is also a direct reflection of our corporate vision, which in part states, ‘we will provide enthusiasts with the Sportsmans Warehouse experience by expanding our reach in current markets, as well as new markets focused in the Western United States.

 

Alamo Group plans to close the Wholesale Sports location it bought, including stores in Spokane, WA and Coeur dAlene, ID.

UFA acquired 15 stores from Sportsmans Warehouse in spring 2009 before the Midvale, UT company filed a Chapter 11 bankruptcy later that year. Since re-emerging from bankruptcy that same year under new management, Sportsman’s Warehouse has launched an online store and now operates from 36 brick and mortar locations in 16 states.