Sportsman's Warehouse plans to close 23 of its doors in a bid to reduce its debt levels. At the same time, the outdoor retailer reached an agreement to sell 15 of its locations to UFA Co-operative Limited, of Alberta, B.C. The retailer reached an agreement in November to sell a majority interest in the company to UFA.
Before the closings and sale, Sportsman's Warehouse operated 67 stores in 29 states. Sportsman's Warehouse is privately owned, with revenues of about $800 million.
The stores being closed are in: Aurora, CO; Coon Rapids, MN; DePere, WI; Henderson, NV; Lafayette, IN; Las Cruces, NM; Las Vegas, NV; Legacy, TX; Memphis, TN; Nampa, ID; New Berlin, WI; Oklahoma City, OK; Pittsburgh, PA; Pocatello, ID; Roanoke, VA; Rogers, AR; Round Rock, TX; St. Cloud, MN; Sioux Falls, SD; Southaven, MS; Visalia, CA; Wichita, KS; and Woodbury, MN.
Stores being sold to UFA Co-operative Limited include Bend, OR; Bozeman, MT; Burlington, WA; Coeur dAlene, ID; Fargo, ND; Federal Way, WA; Helena, MT; Kennewick, WA; Lacey, WA; Missoula, MT; Portland, OR; Salem, OR; Silverdale, WA; Spokane, WA; and Vancouver, WA.
In an exclusive interview with Sports Executive Weekly, Stuart Utgaard, chairman and CEO of Sportsman's Warehouse estimated that about 2,600 employees would be impacted by the restructuring.
Utgaard added that he feels the company now has sufficient capital to move forward but wouldnt say definitively whether or not he foresees similar developments in the future. “In a period of about 15 months, we reduced our total bank debt from about $270 million to $20 million,” he said, “but the banks today are pretty relentless and very difficult. Our bank treated our revolving line of credit like it was a demand note, and once we got into a revolving default, they wouldnt let us out of it.”
Utgaard said he will remain with the company and stressed that he foresees no changes within management, adding that the restructuring process is expected to leave the company “solidly profitable and well capitalized” to effectively continue operations.