ORIGINALLY PUBLISHED ON CJONLINE
As I wrote in a recent blog, sources from Reuters have indicated that outdoor retail giant may be gearing up to file for bankruptcy.
As I wrote in a recent blog, sources from Reuters have indicated that outdoor retail giant may be gearing up to file for bankruptcy.
The company, which faces intensifying competition from the proposed acquisition of rival Cabela’s by Bass Pro Shop, responded to the rumors after initially taking a “vow of silence.”
While it didn’t directly mention bankruptcy, the company said in a statement that it is subject to “economic cycles, changes in our industry and shifts in consumer demand that require us to adapt our business accordingly.”
The deal between Cabela’s and Bass Pro is on rocky footing, however, with Cabela’s shares declining in recent weeks and the withdrawal from Capitol One of its application to purchase Cabela’s credit card division.
If the deal were to go south, Cabela’s reportedly could be forced to pay a $126 million termination fee “under certain circumstances.” Under other circumstances? Bass Pro may have to pay Cabela’s up to $230 million.
While it didn’t directly mention bankruptcy, the company said in a statement that it is subject to “economic cycles, changes in our industry and shifts in consumer demand that require us to adapt our business accordingly.”
The deal between Cabela’s and Bass Pro is on rocky footing, however, with Cabela’s shares declining in recent weeks and the withdrawal from Capitol One of its application to purchase Cabela’s credit card division.
If the deal were to go south, Cabela’s reportedly could be forced to pay a $126 million termination fee “under certain circumstances.” Under other circumstances? Bass Pro may have to pay Cabela’s up to $230 million.
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