Sportsmans Warehouse liquidating and selling stores

I see on the local 10:00 news last night that SW filed for chapter 11 on Saturday. $452,000,000 in debt and the chain is only worth $432,000,000 The report said they they blamed the tough economy for their decision. Hmmmmm.......very interesting. So what happened for the two years prior to the economic slump when they were in still in the tank???? I wonder if their creditors are falling for their excuse? ANd if that's the reason they closed their doors, why then are Cabelas, Basspro, and numerous other small businesses still going? In fact, most have seen an INCREASE in business since November!

Seriously, it should be obvious why they are in trouble. And it ain't got nothin' to do with the general public.

They have to go chapter 11 to get out ot their leases. You cannot close that many stores and get out of that many leases. You have to do chapter 11 to get out of that. They were also leveraged to the hilt so when the economy falls there is NO room to move and the cards start to fall.

Bass Pro is privately held so you wont know if they have any problems until its to late. They seem to run a good business but there is no way to really kinow.

Cabelas did not make any money last year through their stores. There stores were actually a little bit of a loss. Cabelas made $183 million in profit off of their "Worlds Formost Bank" division that issues their credit card. They have made some good decisions over the years. They have land holdings, internet, catalog, stores and their own bank. The Cabelas brothers really did some things right over the years. Last october their stock was just over $4.50. Now its back around $8,50. I hope you guys bought some. Its a good stock. Still undervalued in my opinion.

So long story short Sportsmans leveraged everything, expanded way to quickly and was never properly capitalized. That is certain failure for sure.
 
They have to go chapter 11 to get out ot their leases. You cannot close that many stores and get out of that many leases. You have to do chapter 11 to get out of that. They were also leveraged to the hilt so when the economy falls there is NO room to move and the cards start to fall.

Bass Pro is privately held so you wont know if they have any problems until its to late. They seem to run a good business but there is no way to really kinow.

Cabelas did not make any money last year through their stores. There stores were actually a little bit of a loss. Cabelas made $183 million in profit off of their "Worlds Formost Bank" division that issues their credit card. They have made some good decisions over the years. They have land holdings, internet, catalog, stores and their own bank. The Cabelas brothers really did some things right over the years. Last october their stock was just over $4.50. Now its back around $8,50. I hope you guys bought some. Its a good stock. Still undervalued in my opinion.

So long story short Sportsmans leveraged everything, expanded way to quickly and was never properly capitalized. That is certain failure for sure.

It's a good point that even Cabelas didn't make money last year. The Chapter 11 was fully expected with the sale and closing of stores, I should have included that in my original post. Chapter 11's allow companies to restructure debt, (and leases!), and try to restructure their operating systems so that they can survive. Several airlines have done it. Chrysler effectively did it with Lee Iaccoca, although the Federal government didn't allow Chapter 11, they actually gave Chrysler the power to do those same things without Chapter 11 filing, and that was the reason it worked.

Too much, Too fast; and as has been pointed out, guaranteed failure!

Bill
 
I've been reading these posts . Just wanted to comment on how everyone ran to the local gun shop after obama got elected, and bought up rifles and amunition . I don't blame them at all for that.seeing how he made the statement he's a citizen of the world. I'm not i'm an american. However ,i would like to say i hope they rushed to the polls to vote for mccain like they rushed to buy guns!!!!!!!
 
I just stopped by the one here in Pittsburgh and it's rather dry. They are however a night force dealer. The scopes are 20% last years prices the variable 22x50mm NPR1 was on the shelf with a mil dot as well. The price was $1580 minus the 20% that looks pretty good if your after one of these.
 
Warning! This thread is more than 16 years ago old.
It's likely that no further discussion is required, in which case we recommend starting a new thread. If however you feel your response is required you can still do so.

Recent Posts

Top