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Bass Pro Shops sells 11 Cabela’s stores

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Bass Pro Shops sells 11 Cabela’s stores for $324.3 million

June 7, 2019

San Francisco — A joint venture led by Sansome Pacific, a real estate investment firm based in San Francisco, has acquired 11 locations of outdoor sports retailer Cabela’s for $324.3 million. The transaction was structured as a sale-leaseback with the seller, Bass Pro Shops, which owns the Cabela’s brand.

The specific locations of the 11 stores were not disclosed.

Bass Pro Shops acquired Cabela’s in 2017 in a blockbuster, $5.5 billion deal. The merger brought together three of the nation’s top outdoor sporting brands: Cabela’s, which specializes in hunting; Bass Pro Shops, which specializes in fishing; and White River Marine Group, a Bass Pro Shops company that specializes in boating. At the time of sale, the combined portfolio of the three brands totaled 184 stores in the U.S. and Canada.

Founded in 1998, Sansome Pacific has developed or acquired over 940 properties in 37 states.

 

https://www.outdoornews.com/2019/06/07/bass-pro-shops-sells-11-cabelas-stores-for-324-3-million/

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I've just been so disappointed in Cabela's in our area over the past couple years. They are always out of stock on gear and it takes forever for them to re-stock the shelves. From my personal experience, I think the customer service has gone down as well. Not too many good options for tackle stores up here in the Midwest anymore...

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Journalism is in such a state complacency and lazyness these days. What was sold isn't Cabela's stores, what was sold was the real estate occupied by these stores, it's a big difference. Not quite fake, but close.

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I hope they keep the Hamburg PA store open, I do a little weekend trip up there to fish once or twice a year and I like to wander around the store a bit.  

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It's a leaseback. All B.P. is doing is freeing up cash. The stores aren't changing or closing. 

 

Reporting isnt what it used to be. 

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4 hours ago, Largies4Life said:

I've just been so disappointed in Cabela's in our area over the past couple years. They are always out of stock on gear and it takes forever for them to re-stock the shelves. From my personal experience, I think the customer service has gone down as well. Not too many good options for tackle stores up here in the Midwest anymore...

Same here.  Especially the fishing stuff which is sad since I have one close by.  There floor employees are not as stellar as they used to be either.  I had a guy appear very bothered to check for a reel that wasn't on display which they ended up having. 

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51 minutes ago, Mn_Moose said:

It's a leaseback. All B.P. is doing is freeing up cash. The stores aren't changing or closing. 

 

Reporting isnt what it used to be. 

Yeah, the math doesn't add up though. Unless these are their smallest stores in extremely under performing markets and or they anticipate the value of the real estate to decline or the associated taxes and other expenses are way out of line, then I don't see much financial gain. Of course who knows what the lease terms built into the sale look like or what the over all corp tax benefits may be. I'm sure they have folks looking at this. If you multiply the 11 rents, you'd get to the $324 million pretty quick.

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5 hours ago, Largies4Life said:

I've just been so disappointed in Cabela's in our area over the past couple years. They are always out of stock on gear and it takes forever for them to re-stock the shelves. From my personal experience, I think the customer service has gone down as well. Not too many good options for tackle stores up here in the Midwest anymore...

I stopped going to Cabela’s for fishing gear a few years ago. About the only thing I still buy there are the clothes. 

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Cabelas and their quality, sold out over a decade ago. BP taking over, just put the nails in the Cabelas coffin for me.

 

Once upon time, Cabelas branded clothing was pretty good stuff...

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2 hours ago, Dens228 said:

Same here.  Especially the fishing stuff which is sad since I have one close by.  There floor employees are not as stellar as they used to be either.  I had a guy appear very bothered to check for a reel that wasn't on display which they ended up having. 

I have noticed our Cabelas store has gone downhill since BPS took over. They used to have several good brands and items they had to get rid of so BPS could fill the pegs with their own branded stuff.

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5 hours ago, fishwizzard said:

I hope they keep the Hamburg PA store open, I do a little weekend trip up there to fish once or twice a year and I like to wander around the store a bit.  

I intend to stop there tomorrow but friends told me not to expect much. They were disappointed when they were there last month. 

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1 hour ago, Armtx77 said:

Cabelas and their quality, sold out over a decade ago. BP taking over, just put the nails in the Cabelas coffin for me.

 

Once upon time, Cabelas branded clothing was pretty good stuff...

This.  It had gotten really bad before the merger here in MN.  Bare shelves, no rod selection if you wanted anything other than St Croix, GLoomis or Fenwick.  Same with reels.

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The BPS store (building only) that I used to work at was for sale. Might still be.  Same deal, automatic leaseback. This store is far, far from under performing. Maybe Outdoor World is wanting out of the real estate business.

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I use to like both BPS and Cabelas for different reasons.  What they have merged into ain't exactly great. They use to be stores that celebrated the outdoors.

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like alot of others Bass Pro was my favorite Store. Since the merger they have gone down hill. The last big sale i was at the nearest store an hour away an hour after opening the day of sale and they didnt have alot of the things on sale and were not planning on getting any.

 

bought alot online this year cheaper than Bass Pro if watch the sales

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The Cabela's in Illinois was always great for fishing gear. Racks and racks of it. When BPS bought it, lots of the great Cabela's rods and reels, and tackle started disappearing. Most of it discontinued. Whenever I talk to employees there they seem as friendly as ever, but if I ask them about what's happening with the gear they all say the same thing.

BPS doesn't tell them anything about  what gear is changing, or being discontinued until it's gone.

 

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To be fair, online shopping is taking its toll on all brick and mortar businesses, not just Cabela's. One of the reasons why stores carry less and less merchandise is it doesn't make sense to tie up all that cash in store inventory when people are ordering online.

 

To me that's a double edged sword. Often times I want to inspect the merchandise before making my purchase. For example, I would have a hard time buying something like a sofa online without checking it out in the store first. I want to make sure of comfort and quality first. Clothes and shoes are another purchase I prefer to do in the store rather than online.

 

But stuff like lures, reels, electronics, tools, and other stuff I have no hesitation to purchase online.

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1 hour ago, Koz said:

To be fair, online shopping is taking its toll on all brick and mortar businesses, not just Cabela's. One of the reasons why stores carry less and less merchandise is it doesn't make sense to tie up all that cash in store inventory when people are ordering online.

 

To me that's a double edged sword. Often times I want to inspect the merchandise before making my purchase. For example, I would have a hard time buying something like a sofa online without checking it out in the store first. I want to make sure of comfort and quality first. Clothes and shoes are another purchase I prefer to do in the store rather than online.

 

But stuff like lures, reels, electronics, tools, and other stuff I have no hesitation to purchase online.

During the last recession which the forward thinking state of Illinois decided was a great time to raise taxes, the Illinois store in Hoffman Estates closed down their upstairs section.  I asked a manager about it, she said that they pay more taxes for retail space square footage so they eliminated the upstairs as retail.  Some of it has opened back up since then though.

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A few years ago, before my wife knew how to use spinning or casting gear well, we went into the Peoria, IL BPS to buy her a nice spincast reel and a rod. The employee I talked to said they didn't have the rod, but I found it on the shelves 5 minutes later. We got the reel and the kid didn't know how to spool it up. Had to talk him through it. I also needed a new baitcaster spooled and the same kid managed to fray my new spool of PP. Went to the Bolingbrook, IL one for a baitcaster in April-ish and the guy was irritated that I wanted to handle the reel in the box before purchasing to 1.) Make sure it felt right and 2.) To make sure it was a lefty. I like taking my family to explore the place but the customer service is trash and I hate dealing with the people there. These days it's like asking the Walmart electronics employee about such and such electronics: they don't have a clue.

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32 minutes ago, Glaucus said:

A few years ago, before my wife knew how to use spinning or casting gear well, we went into the Peoria, IL BPS to buy her a nice spincast reel and a rod. The employee I talked to said they didn't have the rod, but I found it on the shelves 5 minutes later. We got the reel and the kid didn't know how to spool it up. Had to talk him through it. I also needed a new baitcaster spooled and the same kid managed to fray my new spool of PP. Went to the Bolingbrook, IL one for a baitcaster in April-ish and the guy was irritated that I wanted to handle the reel in the box before purchasing to 1.) Make sure it felt right and 2.) To make sure it was a lefty. I like taking my family to explore the place but the customer service is trash and I hate dealing with the people there. These days it's like asking the Walmart electronics employee about such and such electronics: they don't have a clue.

I very rarely ask for help in BPS or any store for that matter. Doing so is usually an exercise in frustration.

 

I visited the BPS in Orlando FL last week and as usual the specific items I wanted were not there. I was with family and friends and both wives "encouraged" me to ask for assistance in finding the new bubbling toad topwater bait. I did and as usual not only did they not have the bait, the clerk who I asked never heard of it. I had to show him a pic of the BPS brand bait on my phone!

 

I settled for one of those double down BPS ploppers. I lost the bait the same day to a gator...

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20 hours ago, BassWhole! said:

Journalism is in such a state complacency and lazyness these days. What was sold isn't Cabela's stores, what was sold was the real estate occupied by these stores, it's a big difference. Not quite fake, but close.

The land and stores were sold, the inventory was not. It seems to be a 25 year leaseback that monetized their last real estate holding (acquired from Cabela's) and BPS will continue to operate the stores. From what I can gather, no BPS stores are on properties that they own, but they're privately held so I don't know for sure.

17 hours ago, Mn_Moose said:

It's a leaseback. All B.P. is doing is freeing up cash. The stores aren't changing or closing. 

 

Reporting isnt what it used to be. 

It's a 25 year leaseback. All B.P. is doing is monetizing real estate they acquired from Cabela's because they're in the business of selling retail at 50-60% margins. The article never said they are changing operators or closing.

 

Posting isnt what it used to be.

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2 hours ago, Glaucus said:

A few years ago, before my wife knew how to use spinning or casting gear well, we went into the Peoria, IL BPS to buy her a nice spincast reel and a rod. The employee I talked to said they didn't have the rod, but I found it on the shelves 5 minutes later. We got the reel and the kid didn't know how to spool it up. Had to talk him through it. I also needed a new baitcaster spooled and the same kid managed to fray my new spool of PP. Went to the Bolingbrook, IL one for a baitcaster in April-ish and the guy was irritated that I wanted to handle the reel in the box before purchasing to 1.) Make sure it felt right and 2.) To make sure it was a lefty. I like taking my family to explore the place but the customer service is trash and I hate dealing with the people there. These days it's like asking the Walmart electronics employee about such and such electronics: they don't have a clue.

Your experience is crazy, I don't blame you for being mad. At the BPS I worked at, management insisted that we opened every boxed reel to let the customer hold it, spin the handles, etc. To my knowledge, they still do.

 

When I first started, I was some what amazed at the reels that made grinding sounds out of the box. Some reels would bind up, again straight out of the box. Pretty much every brand.

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1 hour ago, Junger said:

The land and stores were sold, the inventory was not.

Posting isnt what it used to be.

Are you saying the business was split up and that those Cabela's stores are now owned and operated by the buyers? I didn't get that from the article, cause if no, then the stores were not sold, they just changed landlords.  MPGA! :) 

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1 minute ago, BassWhole! said:

Are you saying the business was split up and that those Cabela's stores are now owned and operated by the buyers? I didn't get that from the article, cause if no, then the stores were not sold, they just changed landlords.  MPGA! :) 

I stated that BPS would continue to operate the stores, which is also from various other financial related sources. No buyer would only want to purchase the land without the building. Once the lease term expires, if the lessor still owned the building, it would essentially render the land useless. This what K-Mart did when they sold off their real estate and stores, but leased them back to continue operating to avoid bankruptcy (to no avail).

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1 minute ago, Junger said:

I stated that BPS would continue to operate the stores, which is also from various other financial related sources. No buyer would only want to purchase the land without the building. Once the lease term expires, if the lessor still owned the building, it would essentially render the land useless. This what K-Mart did when they sold off their real estate and stores, but leased them back to continue operating to avoid bankruptcy (to no avail).

Yeah, I wasn't suggesting they bought the land and not the building, hence the "changed landlords". What they didn't buy, and why I stated the article is inaccurate, which it is, is the business, which the title "Bass Pro Shops sells 11 Cabela’s stores" states, and "has acquired 11 locations of outdoor sports retailer" in the opening further reiterates.

Not good journalism, and just horrendous sporting goods retailing journalism.

 

11 minutes ago, Junger said:

No buyer would only want to purchase the land without the building.

With the exception of trailer parks, what a scam that is.

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