HOBOKEN, New Jersey— Newell Brands, parent company of industry giant Pure Fishing, reported pro-forma sales in its Play segment sliding by 1.2-percent in Q2. That slide is due to a decline in broad retail de-stocking in the fishing segment—most likely related to the March bankruptcy of Gander Mountain, Inc.
Court filings from March indicate that Pure Fishing was owed $4.5 million at the time of Gander’s bankruptcy filing.
“The Play segment generated net sales of $782 million, a 14.2 percent increase compared with $685 million in the prior year,” says the Newell Brands quarterly report. “Pro forma core sales declined 1.2 percent as solid growth on Beverages, Coolers and Team Sports was more than offset by a decline on Fishing related to broad retail inventory de-stocking across specialty and mass retailers and the negative impact of a key retail customer bankruptcy.”
Pure Fishing shares the Newell Brands Play segment with popular outdoor recreation brands like Rawlings, Coleman, Marmot, and K2. Fishing brands under the Pure Fishing banner include Abu Garcia, Berkley, Shakespeare, Penn, and Ugly Stik.
In April, Gander Mountain and its assets were purchased at auction by a Camping World-led consortium for $37.8 million. Chairman Marcus Lemonis reportedly intends to re-open up to 70 Gander Mountain locations; however, the consortium announced on June 30 that just 57 stores will be reopened for the time being.