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Cabela's / Bass Pro


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The whole merger was about the cabelas credit card I believe. I think it is worth a lot of money and a private company was going to hostile take over Cabelas and sell the credit card off for a profit and leave Cabelas to rot. Cabelas asked Bass pro to save them from dying.

Not to further derail the thread on this.

 

But, it was a activist investor that was out to make a quick killing....unfortunately. One investor had purchased enough stock to force a sale which drove up the stock price. Immediately after the sale, that investor sold their stock and got out. He accomplished his goal and is laughing all the way to the bank.

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The whole merger was about the cabelas credit card I believe. I think it is worth a lot of money and a private company was going to hostile take over Cabelas and sell the credit card off for a profit and leave Cabelas to rot. Cabelas asked Bass pro to save them from dying.

Not to further derail the thread on this.

 

But, it was a activist investor that was out to make a quick killing....unfortunately. One investor had purchased enough stock to force a sale which drove up the stock price. Immediately after the sale, that investor sold their stock and got out. He accomplished his goal and is laughing all the way to the bank.

 

The credit card business is the true money maker for Cabela's. I know that the retail stores are cool, but I think it was a bad decision to try to grow the business that way. Unfortunately, that was a by-product of Cabela's going public a few years ago. That was the worst decision the family could have made for the long-term viability of the company. When a company is publicly traded, the stockholders are going to demand revenue and profit growth, and that's why Cabela's decided to expand the number of retail stores across the country. The stock plummeted, and then the activist investor swooped in and did what BRB described.

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  • 6 months later...
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After two years of uncertainty, Sidney, Nebraska, could know within the coming months just how devastating the loss of Cabela’s headquarters could be for the town of 6,800.

 

Cabela’s said last week in a regulatory filing that Bass Pro Shops is expected to close on its $5 billion purchase of the homegrown Nebraska outdoors retailer on or a few days following Sept. 21.

 

The combined company’s headquarters will be in Bass Pro’s home of Springfield, Missouri.

 

Job cuts are likely coming down the pike — something Cabela’s employees and residents of Sidney have been worried about since Bass Pro announced about a year ago that it would buy Cabela’s.

 

“There will be people losing their jobs, because part of the way that Bass Pro is going to pay for this deal is by reducing expenses,” said Jim Zipursky, an investment banking adviser for midsize companies with Corporate Finance Associates in Omaha. Job losses typically come when two competing companies merge, he said.

 

At its height, Cabela’s had employed around 2,000 people in Sidney, a town about six hours west of Omaha.

 

Employees at the store level are the most likely to keep their jobs, said Erik Gordon, a professor at the University of Michigan’s Ross School of Business who focuses on mergers and acquisitions.

 

Those in administrative functions in Sidney are most at risk, he said. The merged company won’t need two legal, information technology, finance or human resources departments, for example.

 

OWH

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  • 5 months later...
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Bass Pro Shops is offering employees at Cabela's former headquarters buyout packages that include bonuses of up to $40,000, giving them two weeks to accept the offers before Bass turns to layoffs.

 

Cabela's employees at the company's former headquarters in Sidney, Nebraska, have until March 1 to accept the offer from Bass Pro that would let them leave on their own accord rather than face layoffs, according to a letter sent to employees and obtained by The World-Herald.

 

"This will be a mass exodus in Sidney," a headquarters employee said in an interview on the condition the employee not be named. "This is what people have been waiting for."

 

Bass Pro finalized its $5 billion purchase of Nebraska-based Cabela's last year. Now, the company is faced with the task of eliminating duplicate functions as the two companies combine. The new headquarters will be in Bass Pro's home of Springfield, Missouri.

 

OWH

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Tough situation for Sidney and employees. Guess that’s why I have not heard much lately from my old HS buddy who may or may not have been one of the C?O’s who benefitted greatly from the sale. He really is a great guy but I’m sure that is not the prevailing sentiment of those adversely affected.

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  • 1 year later...

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