GANDER MOUNTAIN, INC.
P.O. Box 128, Hwy. W
Wilmot, Wisconsin 53192
Phone: (414) 862-2331
AT THE COMPANY:
Kenneth C. Bloom
Executive VP/Chief Financial Officer
(414) 862-3302
AT ZIGMAN JOSEPH STEPHENSON:
Linda F. Stephenson/Zigman Joseph Stephenson
100 E. Wisconsin Ave., Milwaukee, WI 53202
(414) 273-4680
FOR IMMEDIATE RELEASE
GANDER MOUNTAIN FILES PETITION TO REORGANIZE
$25 MILLION FINANCING ARRANGED FOR POST-PETITION OPERATIONS
Wilmot, Wisconsin, August 9, 1996 -- Gander Mountain, Inc.
(Nasdaq Bulletin Board: GNDR), a leading marketer of outdoor
hunting, fishing and camping goods, announced today that it and
its two wholly-owned subsidiaries, GMO, Inc. and GRS, Inc., have
filed a Voluntary Chapter 11 petition with the Federal Bankruptcy
Court as part of the continued restructuring of the firm.
The Company also announced that it had arranged for $25
million in debtor in possession financing, to be provided by The
CIT Group/Business Credit, Inc. The Company will seek Bankruptcy
Court approval for the loan. The additional working capital that
the debtor is possession loan provides will be used to purchase
additional inventory to stock the Company's twelve stores for the
upcoming fall season.
Ralph L. Freitag, Chief Executive Officer of Gander
Mountain, said the Company views the filing as a necessary
business decision. "This reorganization is a critical move to
successfully structure a new future for Gander Mountain and to
preserve the greatest value for as many stakeholders as possible,"
said Freitag. "CIT's commitment to provide this financing is a
positive reflection on the company's ability to continue its
operations and should support our efforts to attract equity
capital."
Attorneys for Gander Mountain filed the petition in Federal
Bankruptcy Court in Milwaukee on Friday afternoon. The company
will request that a hearing be held on Monday, August 12, 1996 to
seek approval for the financing and to hear other motions filed on
behalf of the Company. Company officials have indicated that it
was the desire of the company to emerge from bankruptcy as swiftly
as possible.
"We are extremely grateful to the customers, employees, and
vendors who have supported the Company through this difficult
period and we sincerely believe that this action will set a course
for future growth and profitability." Freitag said.
A Chapter 11 filing is a legal process that allows a company
to remain in business while addressing financial issues under the
protection of the court. A Chapter 11 filing differs from a
straight bankruptcy in that creditors look to the value of the
company as an ongoing business, rather than to the value of the
company upon liquidation to satisfy their claims.
Gander Mountain, Inc. is a customer-oriented specialty
merchandiser serving the outdoor recreation market. The Company
is recognized as a leader in providing functional outerwear,
footwear and equipment for the hunting, fishing and camping
enthusiast.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
GANDER MOUNTAIN, INC.
Date: August 31, 1996 By: /s/ Kenneth J. Guerrini
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Kenneth J. Guerrini
General Controller
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