In November, we reported on the planned acquisition of financially-strained Sportsman's Warehouse company by Canada's UFA Cooperative, a multi-billion dollar, agricultural based cooperative with a wealth of varied business holdings and more than 110,000 members.
Yesterday afternoon, word from UFA spokesperson Natalie Dawes that the acquisition has changed - significantly- from the Sporsman's Warehouse acquisition originally announced.
Based on the outcome of UFA's due diligence and "the continuing deterioration of the North American economy", terms of the deal had changed from a total acquisition to UFA's taking possession of fifteen Sportsman's Warehouse locations in the Northwestern United States.
The ownership of those stores would be accepted as payment of a 2008 loan to Sportsman's Warehouse by UFA. As we reported at that time, that cash infusion kept the cash-strapped chain operating.
UFA says the modification will ensure the long-term financial health of the cooperative, with the fifteen stores aligning well with its Western Canadian geography and distribution routes.
Those fifteen stores are located in Oregon, Montana, Washington, Idaho, and North Dakota.
Sportsman's Warehouse Chairman and CEO Stuart Utgaard has announced the liquidation of twenty-three stores to "reduce bank debt". A statement on their compay website says it is hoped the steps will allow the firm to go forward as a viable entity with 2,300 employees.
These Sportsman's Warehouse stores are being liquidated:
Aurora, Colorado, Coon Rapids, Minnesota, DePere, Wisconsin, Henderson, Nevada, Lafayette, Indiana, Las Cruces, New Mexico, Las Vegas, Nevada, Legacy, Texas, Memphis, Tennessee, Nampa, Idaho, New Berlin, Wisconsin, Oklahoma City, Oklahoma, Pittsburgh, Pennsylvania, Pocatella, Idaho, Roanoke, Virginia, Rogers, Arkansas, Round Rock, Texas, St. Cloud, Minnesota, Sioux Falls, South Dakota, Southaven, Mississippi, Visalia, California, Wichita, Kansas, and Woodbury, Minnesota.
Between the sale to UFA and the liquidation of stores, Sportsman's Warehouse is trimming its store count from its previous high of more than sixty stores.
"UFA is advancing a deliberate and controlled diversification strategy," says Dallas Thorsteinson, UFA president and CEO. "The specific Sportsman's Warehouse locations we have acquired fit perfectly with our outdoor-adventure marketing and long-term financial strategies."
"We cannot predict the future for Sportsman's Warehouse," says Thorsteinson, "but we are certain the acquisition of these specific locations is good news for the growth and sustainability of UFA."
The acquisition gives the cooperative twenty-two locations. Earlier in 2008, UFA acquired Canadian outdoor outfitter, Wholesale Sports. The newly acquired Sportsman's Warehouse locations will operate as part of UFA's outdoor adventure division.
Over the past several days, industry insiders had been whispering that the deal - if not dead - was facing significant modifications. Seems they were on target on this one.