We’ve seen some chatter about Bass Pro Shop buying Cabelas in recent days.
Here’s some of what we’ve seen. You can read and decide.
As Cabelas has been underperforming this year (as stock is down something like almost 40% for the year), it wouldn’t be surprising.
Exclusive: Bass Pro Shops explores bid for Cabela’s – sources
Privately held outdoors retailer Bass Pro Shops is exploring an offer for Cabela’s Inc (CAB.N), the U.S. hunting and fishing store chain targeted by activist investor Elliott Management, people familiar with the matter said.
Bass Pro is working with an investment bank on the potential offer, the people said this week. Cabela’s has recently begun to explore its options and has also reached out to private equity firms to solicit interest, the people added.
The sources asked not to be identified because the deliberations are confidential. Bass Pro Shops declined comment, while Cabela’s did not respond to a request for comment.
Shares of Sidney, Nebraska based Cabela’s jumped as much as 13 percent on the news, giving it a market capitalization of around $3 billion.
Last month, Elliott disclosed an 11 percent stake in Cabela’s and called for it to explore strategic alternatives, including a sale to a private equity firm.
Cabela’s manages retail stores in the United States and Canada. The stores are known for their museum quality experience, offering taxidermy, a pond and other attractions.
Cabela’s employees concerned about future
BILLINGS – We have developing news regarding a major retailer here in Billings. Sources told KULR-8’s Leah Jordan that a major buyout is coming regarding Cabela’s.
Several employees expressed concern about what the looming buyout means for the future. Management confirmed to employees Monday that a competitor may buy out Cabela’s, according to an anonymous staff member.
The sources said the deal was finalized Nov. 9, and the formal take-over will be Jan. 1, 2016.
One employee agreed to speak with KULR-8 on camera under the condition that we protect their identity.
“The manager had told her that her job was going to basically be overcome Jan 1. Several other people were commenting on it, and as I was leaving work another employee was talking to a department manager. So I stopped and caught the tail end of their conversation, so I approached him and said, ‘So this is true? We are being bought out and we are not going to have jobs?’ He said, ‘I don’t know whether they will keep anyone, I don’t know if the store will stay open or what their plans are.’ I said, ‘Well, is the January 1st deadline true?’ And he said, ‘Yes.'” the anonymous employee said.
The employee told us management was specifically instructed not to disclose the deal involving the potential buyout.
There are still many unanswered questions about what it means for jobs after the start of the new year.
Cabela’s stock price has fallen 37 percent since the beginning of the year.
The employee tells us the competitor is Bass Pro Shops. We reached out to Bass Pro Shops; they declined to discuss any looming deals.