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“What killed that business was massive corporate overhead, an undisciplined inventory process, an inefficient logistics and transportation process and the stores being built too big with too high rent factors,” said Lemonis. He said that with the changeover, corporate overhead has already been “wiped out.” Gander’s past distribution center model has been renegotiated and is now merged into Camping World’s distribution center model. Instead of four distribution centers serving Gander and Overton’s, five will hold product for Camping World, Gander and Overton’s to support all three chains. The change is also expected to help enhance delivery of online orders. The company is also in the middle of lease re-negotiations to reduce rents. Lemonis said a number of public REITs have been “very helpful” in the process. He stated, “I think they understand the benefit of having a solid credit tenant as opposed to an empty box. Our discounts in some cases have been massive. And in other cases they have been massive on first blush and we still walked away.” Camping World acquired the designation rights to all 160 leases and has until October 6 to retain or reject them.
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