St. Paul-based Gander Mountain has agreed to a stalking horse bid for its assets as it looks to remain in business.
A joint venture comprising Boston-based investment firm Gordon Brothers and Northbrook, Ill.-based retail specialist Hilco Merchant Resources made the offer that was filed in U.S. Bankruptcy Court.
A stalking horse bid sets the bar for a sale, but other potential buyers can submit competing bids. Gander Mountain is hoping to conduct a final auction later next month with the aim of completing a sale by May 15.
“Gander Mountain believes it has substantial market value to strategic buyers and that today’s agreement provides a competitive baseline to evaluate subsequent offers and to maximize value to its stakeholders,” the company said in a statement. “The company and its advisers remain in discussions with a number of interested parties that are engaged in due diligence in an effort to finalize proposals, offers and bids.”
Gander Mountain, the nation’s largest chain of outdoor specialty stores, first filed for bankruptcy protection earlier this month, saying that it will close 32 of its 162 stores as it seeks a buyer.
The privately held company is one of many brick-and-mortar retailers that have been struggling to stay afloat as consumers increasingly gravitate to online shopping.
Gordon Brothers and Hilco are involved in several liquidation efforts, including BCBG, Hhgregg and Wet Seal.