02-10-2009, 11:26 PM
I read this the other day :
In a November 20 letter to employees and vendors obtained by NewWest.Net, Sportsman’s Warehouse Chairman and CEO Stu Utgaard called the transaction an “investment” and “cash Infusion” that will “allow us to improve the flow of merchandise to the stores.” But sources in Sportsman’s Warehouse tell me they consider it an acquisition.
Utgaard’s letter is in response to recent failure of the company to keep adequate inventory on the shelves because of being on credit hold or at least watched carefully by vendors not wanting to increase their exposure when already faced with late payments for past deliveries.
“This cash infusion should support the continued growth and development of the company in the future,” Utgaard wrote, but at the same time, he said goodbye to his 5,500 employees. “I will no longer serve as Chairman and CEO, and may not have any executive authority unless they (UFA executives) discover that I have some redeeming qualities in the future.”
Calls to Utgaard and UFA’s Corporate Affairs office for comment on the sale have not been returned.
UPDATE, 11-26-08: I received this press release today and a note from UFA spokesperson Natalie Dawes who confirmed that “UFA Co-operative Limited is poised to acquire US-based outdoor retailer Sportsman’s Warehouse, which is an important step in UFA’s diversification and growth strategy.”
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In a November 20 letter to employees and vendors obtained by NewWest.Net, Sportsman’s Warehouse Chairman and CEO Stu Utgaard called the transaction an “investment” and “cash Infusion” that will “allow us to improve the flow of merchandise to the stores.” But sources in Sportsman’s Warehouse tell me they consider it an acquisition.
Utgaard’s letter is in response to recent failure of the company to keep adequate inventory on the shelves because of being on credit hold or at least watched carefully by vendors not wanting to increase their exposure when already faced with late payments for past deliveries.
“This cash infusion should support the continued growth and development of the company in the future,” Utgaard wrote, but at the same time, he said goodbye to his 5,500 employees. “I will no longer serve as Chairman and CEO, and may not have any executive authority unless they (UFA executives) discover that I have some redeeming qualities in the future.”
Calls to Utgaard and UFA’s Corporate Affairs office for comment on the sale have not been returned.
UPDATE, 11-26-08: I received this press release today and a note from UFA spokesperson Natalie Dawes who confirmed that “UFA Co-operative Limited is poised to acquire US-based outdoor retailer Sportsman’s Warehouse, which is an important step in UFA’s diversification and growth strategy.”
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