Wasilla store avoids fate of national siblings

WASILLA — Despite the corporation filing for Chapter 11 bankruptcy protection, it’s business as usual at the Wasilla Sportsman’s Warehouse, said CEO Stu Utgaard.

On March 10, Utgaard announced the company was liquidating 23 stores around the county and selling another 15 to a Canadian buyer.

“We had to close a lot of stores to pay our bank debt,” Utgaard said. “The only way to get out of the buildings we were in was to do a Chapter 11 to break the lease.”

The closing of the stores meant 1,900 employees lost their jobs. It’s unfortunate, but the natural thing to do when sales are down is to cut your pay roll, he said.

Staffing in Alaska has been reduced as well, he said, but all three stores remain open and inventory levels should be unaffected. Vendors are shipping goods, Sportsman’s Warehouse is paying for goods, and there are no plans for liquidation sales at the remaining stores, he said.

If customers notice bare shelves in the Wasilla store, it’s due to a nationwide general shortage of ammunition, Utgaard said.

“People are afraid some legislation is going to pass that restricts their rights to buy ammunition,” he said. “A lot of people are hoarding because of that.”

What Utgaard was unsure of was the continuing community involvement that sets Sportsman’s Warehouse apart from many national chains. The store features goods from local merchants as well as supporting organizations.

Local vendors are optimistic, as the store is still selling their products. Mike Borgford of Raven Glass Works said the orders have been slow, but this is a traditionally slow time of year and his work is still on display, he said.

Kristen Shields sells earrings made from old fishing lures. Sportsman’s Warehouse has not renewed the order, but the pieces are still up for sale in the store.

The organizations supported by Sportsman’s Warehouse are more concerned. Nancy Sult of the Houston Chamber of Commerce said the store is a main contributor to both their pike derby and Founders’ Day river float. She has not heard anything certain yet, but she is not counting on the prizes the store usually donates.

“Our community activities are restricted by the creditor’s committee. Currently, we can’t go out and spend money on those things,” admitted Utgaard. “But when we re-emerge from bankruptcy, we will resume our level of support.”

Utgaard is confident Sportsman’s Warehouse will survive, despite the fact no retail store has every successfully come out of Chapter 11. They have had no bank debt for the past three weeks, they kept their most successful stores, and they have enough cash and credit to pay operating costs and bankruptcy fees, Utgaard said.

Contact Todd L. Disher at todd.disher@frontiersman.com or (907) 352-2252.