Cabela's may be hunting for a buyer

Cabela's has confirmed that it is in the process of reviewing strategic alternatives weeks after speculation surfaced that Bass Pro Shops is looking to acquire the retailer.



Cabela's announced Wednesday that its board of directors is initiating a process to explore and evaluate a wide range of strategic alternatives to further enhance shareholder value.



“We continue to believe that our Vision 2020 strategy will position Cabela’s to be the world’s best omnichannel retailer, while driving improved performance in both revenue growth and profitability,” said Tommy Millner, CEO. “That said, the board is committed to taking actions to enhance value for shareholders and believes it is an appropriate time to explore potential strategic options that may drive further value. As the board undertakes this exploration process, Cabela’s is focused on the execution of its business strategy and remains fully committed to serving our customers’ needs.”



The company, which had 64 stores at the end of 2014, had announced plans to eventually operate 225 stores in North America. But sluggish sales led it to reevaluate its plans for new-store openings beyond 2016.



Cabela’s said it is working with Guggenheim Securities, LLC as its financial adviser and Sidley Austin LLP and Koley Jessen P.C., L.L.O. as its legal counsel to assist in the strategic review.



“As we head into the holiday selling season, our stores are well-stocked and our outfitters are well-prepared to meet and exceed the expectations of our customers,” Mr. Millner said. “We are continuing to honor all of our commitments as usual. There have been no changes to the Cabela’s CLUB points program, the CLUB Visa card or any of the points customers have earned, including any Cabela’s gift cards that customers have bought or plan to buy in the future. I want to thank the many customers who are enrolled in our CLUB points program and who use our CLUB Visa card, who should continue to use their CLUB points and CLUB Visa cards just as they always have. We will continue to look for ways to make these programs even more rewarding in the coming year.”