This does not surprise me at all. The Sportsman's in my town never had anything in it for the last 3 months. When they were asked about it they had every excuse in the world other than they were going to close. If anybody that new anything about business at all could tell they were headed down.
In my local store they get what they deserve in my eyes. I had 2 instances where they said they would get an item transferred in from another one of there stores for me and never even called me back to say they couldn't and then they wonder why there broke. I kind of hate see them close but the only thing I ever got from them was reloading things and they have not had any of that for 3 months so I guess I won't miss them.
With all this said maybe all the CEO and big wigs from the company should have cut back on all there guided hunting and fishing vacations. With all the pictures you saw on there picture boards of them on all there guided hunts must have cost a the company a fortune.
This is really a surprise because with the prices they were chargeing you would think they were making all kinds of money ... I guess their customers got smart and went to WalMart for the same thing at half the price ... lol ... Good for them ... WPT ... (YAC) ...
SW is THE contributor to its own problems. Their advertising, expecially in the more major media was non-existent. They had a store location here in Michigan which was absolutely questionable (located in the near-Detroit suburb of Allen Park). They were open about nine months. During that time, they never had an advertisement on television, or even in a newspaper. I understand they rely quite heavily on word-of-mouth. They didn't offer enough of a discount from local dealers including Dunham's, to build any kind of permanent clientele.
I can't understand how anyone can rely on that type of advertising to maintain, much less grow, a business. With competition like Gander Mountain, Cabela's, Bass Pro Shop, and the like, I'm not surprised they're on the ropes.
As an old, time, banker I'm very disappointed with the path so many of our banks have taken in the past 10 or 15 years. They have gotten away from traditional banking products, and gone into fee income products. However the Sportman's handling seems right to me.
The loan and lines of credit, I would think, are to the Sportman's parent firm. If the combined income and cash flow of all the stores is not sufficient to service the debt then it's time to liquidate the assets to cover as much of the liability as possible. This is traditional banking.
Sportman's should have taken steps to rid themselves of the bad stores, and to try to service the debt with the income and cash flow from the good ones. I doubt this would have produced enough to do so.
I was told that Sportsman's Warehouse had been bought by a Alberta,Canada Co-op
and mybe they are re-structuring.
I have no definate knowledge.
They did have 69 operations.That would live them with 46.
I'm an i-banker (vs. Ron's 'traditional' Merchant Banking) and SW has looked to me for a while as Circuit City II: overbuilt, overleveraged, poorly located, questionably managed, with a dicey fundamental business model and I was never certain they knew their customers very well.
I was never real sure what was the basis of SW's bank lines, anyhow - but I only do this stuff for a living. The i-banks who funded SW are *supposed to take this one in the shorts, too.
I actually stopped going to Sportsmens Warehouse a couple of years ago because they rarely had in stock what I wanted and started to shop online. Got the stuff in at or below what SW would charge me. I've always bought my guns from others so don't really know about that side.
Just got back; The stores East of the Mississippi are closing. Ours was a good producer and there was no need to close it. Their prices were good, a little more than the mail order houses.
Gander Mountain here is nuts with the prices, 58 dollars for a 40 dollar pack of bullets, 12 dollars for 7 dollar wads, and like that. they must be using the sports stuff as a hook to get people i their clothing store.
SW did have a problem with keeping the stock up, but that may have been because they wanted inventory down for the sale.
"In the teleconference, Upgaard said UFA will have the rights to use the Sportsman’s Warehouse brand on the 15 stores for up to two years, but will likely start the process of re-branding the stores as Warehouse Sports, a similar Canadian sports store chain UFA already owns.
These 23 stores are being liquidated: Aurora, CO, **** 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
These 15 stores are being sold to UFA: Bend, OR, Bozeman, MT, Burlington, WA, Coeur d’Alene, 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 "
It's too bad for you guys that frequent the stores. I don't have one in my area. But always wished I had one after visiting the ones in Mesa, AZ and Pittsburg, PA. I'm not even a local to those stores and would be walking out with a big azz bag of stuff for the trip home. The ones I was in were put together very well.
I think it's a business or lack of business, poor mgt. leadership, etc. that's causing it.
But, if your that paranoid or suffer a bad case of paranoia it's the government. SW was a big threat to Washington. They just don't fit into the stimilus bill.
Hey Pocatello, At least we can still go to IF if we need anything. The only thing I ever purchased in the Pocatello store was reloading supplies and like you said, they been out for months so I never spent much money in there as of late anyway.
I hate to see them close but cant say is I will miss them. I personally didn't like how they run there business. Most of there employees are good people but there were a few that were as lazy as it gets. Know wonder they went under. It shouldn't come to anybody's surprise. It didn't take a rocket scientist to figure out where they were headed a few months back. There is one thing that did surprise me about the Pocatello store closing is that it didn't close down before now.
If this is the case, the employee I spoke to was misinformed, his statement was the East half of the US was going to be eliminated. He alos said liquidators had a meeting last night, and would be coming in to prepare for closing out the store. (De Pere,Wis)
Outdoor retailer Sportsman's Warehouse is closing 23 stores and selling another 15.
Stuart Utgaard, the chairman and chief executive of Sportsman's Warehouse Holdings, says on the company's Web site that it the actions will let the firm go forward as a viable entity with about 2,300 employees.
The company announced the sales and closures on Tuesday.
Four stores in Utah - in Midvale, Provo, Riverdale and St. George - are not included in the 23 closures or the 15 sales to UFA Cooperative Ltd. of Calgary, Alberta, Canada.
Sportsman's Warehouse has stores in 29 states, selling gear for hunting, camping, fishing and other outdoor activities.
A call to Sportsman's Warehouse headquarters was not immediately returned on Wednesday.
Here in Utah, if you don't want to buy over the internet, Sportsman's if the place to shop, as the prices and selection are second to none including Dick's and Cabela's, I for one and glad they are staying open here. Bruce
For once in my life,i can actually say something good came from living in Wa.
It appears UFA is buying all the pacific northwest stores, and that's it.
although, the one in pocatello didn't get bought out, that's odd.