4Chan/k/ (weapons) says Sportsman's Warehouse has fire sale on guns!

[Big Chudungus]

56% off certain models. Others are saying they are NOT going under, others say they need cash real bad.

https://www.sportsmans.com/shooting-gear-gun-supplies/rifles/howa-randy-newberg-2-carbon-stalker-gun-metal-graycamo-bolt-action-rifle-65-creedmore-22in/p/1696522

[TrappedinCalifornia]

...Others are saying they are NOT going under, others say they need cash real bad...

I did a modicum of research on it awhile back and found the company has somewhere between $120 to $185 million in short term debt with another $500 million (plus) in overall debt.

There were (and still are) a good number of figures being floated, so it's kind of tough to nail down exactly what their liabilities are.

Just about a year ago, the company issued a press release which said, in part...

...Sportsman’s Warehouse Holdings, Inc. (“Sportsman’s Warehouse” or the “Company”) (Nasdaq: SPWH) announced today that it has secured a $45 million term loan with a syndicate of premier financial institutions, strengthening the Company’s balance sheet and overall liquidity.

With the addition of the $45 million term loan, the Company’s total borrowing capacity, which includes its revolving credit facility is now $395 million, subject to borrowing base calculations. Of such total borrowing capacity, $162.3 million is currently outstanding and $124.2 million is currently available for future borrowing. The term loan also enhances the Company’s liquidity, which as of July 30, 2024, is approximately $127 million...

Short version is that word on the street was that the company was attempting to manage its debt through inventory 'control.' I haven't been in much and I don't get to various stores all that often, but if the one store I occasionally drop in on is any indication, what they mean by 'control' is severe reductions in not only physical stock, but also in the make-up of that stock. At one time, not all that long ago, you could find quality brands mixed in with the lower quality. Today, not so much. Likewise, they've reduced, drastically in some cases, depending on department, what inventory they do carry, at least in store.

Most financial 'advisory' pieces I came across didn't necessarily feel they were going out of business, but that investment was... questionable... as an opportunity.

[hermosabeach]

A ton of companies use debt to expand. Sometimes going public is the kiss of death as Wall Street wants more each quarter.


anyone else miss sport chalet?

[Spyder]

I scrolled through several minutes and found zero other deals anywhere near as good as that. 50 or 60 bucks off a 1000 dollar revolver, no 50% anything

[CALI-gula]

The reason they are going bankrupt is because they never opened a store near me.

My purchasing could have gone toward their great, great, great grandchilderns' college educations, mansions, and a yacht! 🤣

.

[Sacperformance]

I live across the street from the Rocklin location….. the store always looks half empty.

[Deelayed]

The one near me is strange. Its like they have the bare minimum when it comes to certain things. But if you wanna camp or fish that is half the store the other half is 50 % clothes 25 % animal /targets /gold panning,firearm accessories,cleaning etc. The back wall and two aisles are firearms and ammo/ reloading . Which BTW the reloading components are 30 of the same thing 20 300 blk and 20 9mm die sets 40 bags of 300 weatherby brass a and various little hornady nick backs and the other side is the same but with shotgun reloading.. sorry for the in depth description but I want the dismality to be felt .

[12pewpew]

It was hands down the best big box gun store per covid. It now seems that they never recovered. Even Turners is a way better option at this point.

[morrcarr67]

They've been having money issues for a while now. Back in 2020/21 they were trying to merge with the Great American Outdoor Group, aka Bass Pro Shops. The FTC blocked the merger, but Great American had to pay a $55 Million cancellation fee. I guess that money helped them out over the past few years and now they maybe in trouble again.