Gander Mountain has begun bankruptcy proceedings following a lackluster return on its aggressive expansion across the United States. The company has failed to capitalize on an expanding market for gun sales, Reuters reports.
It also faces ruthless competition from Bass Pro Shops and Cabela’s Inc. (NYSE:CAB) and others (both merged in a $5.5 billion landmark deal made last year).
The Net Lease REITs that reported the most exposure to Gander Mountain include National Retail Properties (NYSE:NNN) and STORE Capital (NYSE:STOR). NNN has 12 stores that represents 2.2% of Arbor Realty Trust (NYSE:ABR), and STOR has 13 stores that represents 2.2% of ABR. Both NNN and STOR fell on February 10th, when the Gander news was reported, and since that time, shares are recovered.
After several weeks of speculation, STOR management mentioned that Gander is in financial compliance. Chris Volk, STOR’s…