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amigo

Bass Pro and Cabela's

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Is this old news?

I was up at Cabela's in Buda yesterday, and made a comment about Bass Pro buying out Cabela's. The ole boy said it hasn't happened and probably won't. Bass Pro is apparently having difficulty coming up with the financing.

I hope Cabela's continues as a separate company.

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I agree with others, I think it is best for us consumers if they stay separate and competitors. The snag to the deal has to do with the Cabela's credit card company. Capital One is suppose to buy the credit card business, but federal regulators most likely will not be able to approve that deal very quickly so that Capital One can take over the Cabela's card by the date the Bass Pro-Cabela's buyout is supposed to be completed. If the credit card business isn't completed by then, each party has the right to withdraw from the buyout. If both sides still want the deal, then they will probably extend the deadline date.

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They are also saying that with Gander Mountain filing for bankruptcy it may be more difficult to get the merger through due less competition in the industry. which has bee a concern if Bass Pro and Cabela's merge.

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Really odd how things go in circles! Several years ago, Cabelas saved Gander Mountain from death by buying out Gander's catalogue operation. It kept Gander from going down the tubes; they restructured and right away began expanding their stores. No one could figure out what Gander was trying to do with their expansion as they were putting stores in remote locations and close by their competitors.

 

Then Cabelas started their expansion by adding stores, they then increased their smaller satellite store operations. Much of that was done the past 8 years, when the middle class economy was struggling.

 

The whole key to retail sporting goods, is the sales per square foot. If it does not generate specific parameters then that store is either propped up, left as a loss leader, or shut down. When the middle class incomes began to struggle, so did Cabelas.

 

If the Bass Pro deal does go thru, look for the Cabelas stores to be reconfigured or their market become more concentrated, perhaps towards hunting only.

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