The largest U.S. recreational vehicle dealer, Camping World Holdings Inc., and a group of liquidators won a bankruptcy auction for St. Paul-based Gander Mountain Co. on Friday, according to a bankruptcy court filing.
The value of the winning bid for the sporting goods retailer was about $390 million, according to people familiar with the matter who requested anonymity to discuss the details of the auction results.
The Camping World-led group bested a going-concern bid for Gander Mountain from rival Sportsman’s Warehouse Holdings Inc., the sources said.
Camping World, which is run by Marcus Lemonis, a star on CNBC TV’s reality show “The Profit,” plans to operate at least 17 Gander Mountain stores as a going concern, the sources said. An auction for Gander Mountain’s remaining more than 100 leases will be conducted later, the sources said.
The consortium also won all of Gander Mountain’s intellectual property and its Overton’s boating business, the sources said.
This is the second local buy that Lemonis has been involved in this year. In February, he bought the inventory and assets of the Len Druskin stores.
He renamed the downtown City Center store “Shop the Runway.”
Gander Mountain declined to comment, and Lincolnshire, Ill.-based Camping World did not immediately respond to a request for comment.
The auction results will require final approval from a U.S. Bankruptcy Court judge.
Gander Mountain filed for bankruptcy in March with a plan to quickly sell itself after struggling with excess inventory and seeing its approximately 160 stores underperform. It listed assets and liabilities each worth up to $1 billion.
Within the retail sector, sporting goods is going through a period of consolidation and distress. Gander Mountain competitors including Sports Authority Inc. and Eastern Mountain Sports also have filed for bankruptcy.
Financially healthy rivals Bass Pro Shops and Cabela’s Inc. plan to merge this year in a $5 billion deal.
Camping World, which has 120 R.V. super-centers across the U.S. including Rogers and Monticello, Minn., raised $251 million last fall in an initial public offering.
Camping World sees synergies between its business, Gander Mountain and Overton’s, one of the people said.
Lemonis also owns several Bentley’s Pet Stuff locations in the Twin Cities.