All of Cabela’s retail stores in Nebraska — in Sidney, Kearney and La Vista — will remain open, as will its credit card operation in Lincoln, according to a document obtained by The World-Herald.
It’s unclear what will happen to the employees at Cabela’s former headquarters in Sidney, Nebraska. The company employed as many as 2,000 there in recent years.
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.
The Federal Reserve cleared the way late Wednesday for a Georgia bank to acquire Cabela’s credit card operation, removing the last hurdle for a Bass Pro Shops takeover of the homegrown outdoors retailer.
Industry analysts say Cabela’s probably is in a hurry to be acquired by Bass Pro, as its sales and stock price fall.
Total revenue fell 4.2 percent in the quarter to $890 million. Revenue from retail store sales was down nearly 7 percent.
After nearly two years of uncertainty, people here finally have a clear picture — but one that doesn’t include the corporate flag of hometown retailer Cabela’s.
Cabela's shareholders voted to sell the homegrown Nebraska business to Bass Pro Shops, the company announced Tuesday at a special meeting at its headquarters.
Cabela's said Wednesday that the Federal Trade Commission signed off on the deal earlier this week.
Nebraska-based Cabela’s said Monday that it has agreed to extend the Federal Trade Commission’s review of its deal with Bass Pro Shops until July 5. The deadline was originally set for Wednesday. The Federal Trade Commission is charged with maintaining competition within industries and preventing monopolies. The agency has been reviewing Bass Pro’s bid to acquire Cabela’s, which the companies announced in October.
The Federal Trade Commission has to give the deal its blessing; the agency has until the end of the month to complete its latest review of the proposed tie-up. It’s likely the last big roadblock to the sale.
Investors are looking hard at Cabela’s, publicly traded on the New York Stock Exchange, as the third quarter is set to begin. Cabela’s said at the time of the announcement of the Bass Pro tie-up that it expected the transaction to close in the third quarter, which begins next month and ends Sept. 30.
The increasingly likely chances that Bass Pro will close on the deal to buy Cabela’s means there are even more homes for sale in Sidney. Those that are selling are going for a lot less than they would have when the market was at its peak, home sellers and bankers say.
A New York-based hedge fund publicly pushed for Cabela’s to be sold, but in documents filed this week, the Nebraska retailer says it already had been quietly trying to sell itself months before the investor declared its big stake in 2015.
The outdoors retailer reported first-quarter earnings of 28 cents per diluted share, missing analyst expectations that it would earn 39 cents per share.
Cabela’s is now likely to avoid a regulatory roadblock in its plan to sell its business to competitor Bass Pro Shops, saying Monday it reached a deal with Synovus to aid in the sale of its financial arm.
The Cabela’s sale likely is one step closer to being sealed, experts say, dashing hopes that the deal would fall through and that the homegrown Nebraska business could stay in its hometown of 6,800 people, where it employs around 2,000.
Synovus, a regional bank headquartered in Georgia, has stepped up to help Bass Pro Shops consummate its $5.5 billion deal to acquire Nebraska-based outdoors retailer Cabela’s, according to a Wall Street Journal report that cites unnamed sources.
Sandhills Publishing plans to add an office in Sidney, Nebraska, and hire “dozens” of people, possibly occupying office space being vacated by…
The way things stand right now, Bass Pro can’t close on its purchase of Cabela’s retail business before the company’s bank is sold.
“The exact number is really hard to pin down,” Cabela’s spokesman Nathan Borowski said. “A lot of those outfitters and employees will have the opportunity to rejoin the company. We don’t have an exact number.”
Cabela’s hasn’t yet pulled up its roots here, but local residents say nearly everyone in town — from schoolchildren to business owners — already has been affected by the October announcement that Bass Pro Shops would acquire the company in a $5.5 billion deal.
It was the first time management had addressed shareholders in person since Missouri-based Bass Pro Shops announced in October it would buy the Nebraska-grown outdoors retailer for $5.5 billion. The event was a stark contrast from past annual meetings, which celebrated the company’s growth.
Anxiety about job losses is already high in Sidney, where Cabela’s employs 2,000 in a town of 6,800. State officials have said they will work to keep jobs there, but it is unlikely that Missouri-based Bass Pro will need two of everything.
At Cabela’s, failing to meet profit goals didn’t stop top executives from collecting big cash bonuses for the work they did leading to the buyout by rival Bass Pro Shops that could cost thousands of Nebraska jobs.
The earnings released Wednesday exhibit why Cabela’s may have been a target for activist investor Elliott Management, a New York hedge fund that amassed a stake in the company a year ago and pressed for a sale of the company to “unlock” shareholder value.
For shoppers, what will a combined Bass Pro Shops-Cabela’s look like? So far it’s not clear, though retail watchers say both brands could stay around — at least for now.
From 2010 through 2014 Cabela’s built 33 new stores, an expansion that was later to collide with an expanding retailer’s worst-case scenario: falling sales at stores already open at least a year, a deteriorating overall consumer outlook and a quickening consumer preference for online purchases as opposed to those at brick-and-mortar stores.
But Johnny Morris reassured workers that some operations would remain in the company’s hometown and throughout Nebraska after Bass Pro last week said it would take over Cabela’s.
The company announced Friday, in a document filed to the U.S. Securities and Exchange Commission, that it will hold its annual meeting of shareholders on Dec. 13. If the Bass Pro deal is finalized within the next year or so it may be the last shareholders meeting Cabela’s ever has.
In the wake of Cabela's announced sale to Bass Pro Shops, Sidney homeowners are facing a new reality: They may be stuck with nice homes that no one wants to buy. As one Cabela’s employee put it, the housing market has been “the only topic of conversation in my house for the past year.”
Multiple Omaha mergers-and-acquisitions attorneys said words such as “hopes to continue” and “favorable connections” and “important bases” are vague and subjective. In the end, the attorneys agreed, Bass Pro could easily argue that almost any level of employment or activity meets the open-ended definitions.
Elliott Management said in a government filing Wednesday that it had sold more than half of its more than 6 million shares of Cabela’s. The New York hedge fund, which bought big into the retailer last year and threw its weight around, stands to profit by $150 million.
The process of getting approval from federal antitrust regulators for the deal could take well into the spring of next year, could result in the closure of some stores, the Sidney, Nebraska-based Cabela’s brand being sold, or the deal being blocked entirely.
The payouts are common in corporate America, something some business types say are necessary to attract top managers and allow them to do their jobs. But the so-called golden parachutes also have plenty of critics who say they’re just another example of the disconnect between executives and the everyman worker.
“I think we’ve got some work to do to present the case, but that’s why I’m here today in Sidney to talk to the mayor and others to put together the team that will approach Bass Pro with all the things we have to offer here,” Gov. Pete Ricketts said.
There are questions and answers after Bass Pro Shops announced its $5.5 billion purchase of Cabela's on Monday. The biggest question: What happens to the 2,000 workers at Cabela's headquarters in Sidney, Nebraska, a town of 6,800 about six hours west of Omaha.
The Bass Pro Shops offer of $65.50 a share to buy Cabela’s is a 40 percent premium over the price at which the Nebraska retailer’s stock closed Dec. 1 — just ahead of the company’s announcement that it was essentially for sale.
Retail watchers on Wall Street have said that it’s likely that Bass Pro would combine office functions — there’s no need for two accounting departments, two marketing departments and the like. They say it’s most likely that Bass Pro would consolidate jobs at its own headquarters in Springfield, Missouri.
The report, citing anonymous sources, said competitor Bass Pro Shops has partnered with Capital One Financial Corp. to make a bid for the whole company, which includes its retail stores as well as World’s Foremost Bank, operator of the Cabela’s Club Visa card.
The recent buys bring Elliott Management’s ownership of Cabela’s to 9.3 percent of the company, up from its initial stake of 8.9 percent. It still has options to buy more — up to about 11 percent of Cabela’s.
The company said the strategic review that may lead to a sale of the business, announced Dec. 2, is ongoing, but it did not provide any further updates.
At stake are more than 2,000 jobs in Sidney, a town of about 6,800, and about 700 jobs in Lincoln, where the retailer runs its credit card business.
Annual percentage rates on Cabela’s cards could get jacked up to 20 percent or beyond from about 10 percent currently for in-store purchases, one credit card industry watcher said. And if the credit-card operations are outsourced, the employees who operate World’s Foremost in Lincoln might not be needed.
The document, however, provided no update on the so-called strategic review process the company announced Dec. 2, other than to say “the process has continued and is ongoing.”
At each year’s annual meeting, the entire Cabela’s board of directors comes up for re-election. Nominating directors to a company’s board — and then encouraging other big investors to support those directors — is one way an activist investor can press a company to conform to its will.
Cabela’s retail stores might not be worth as much to investors if the company’s lucrative World’s Foremost Bank is split off from the rest of the company, according to a recent analysis by financial publication Barron’s.
Nathan Borowski, a Cabela’s spokesman, wouldn’t say how many employees would be affected, but said the new company, Quad/Graphics, expects to hire “many current Cabela’s employees with relevant experience.” Cabela’s employs more than 2,000 people in Sidney, a Panhandle city of about 6,800 people six hours west of Omaha.
The SEC alleged that Cabela’s failed to eliminate from its financial statements an intercompany “fee” that World’s Foremost Bank, the retailer’s wholly owned banking subsidiary that issues credit cards to customers, paid parent company Cabela’s.
Andrew Burns, an analyst who follows the company with D.A. Davidson Co. in Portland, Oregon, isn’t holding his breath for an update on the possible sale of the company. “I’d love to be expecting one. I think it’s pretty low probability, though,” he said.
If Springfield, Missouri-based Bass Pro does indeed buy Cabela’s, it most likely would take an ax to some of Cabela’s workforce, say experts in mergers and acquisitions. Bass would look for so-called “synergies,” Wall Street speak for opportunities to cut overlapping operations.
Cabela’s employees and shareholders wondering what’s ahead for the Sidney, Nebraska, retailer could have an answer by the end of the month.
The Sidney, Nebraska, headquarters isn’t the only thing at stake as Cabela’s considers a sale of the company or parts of it. Hundreds of jobs in several Nebraska cities also could be on the line.
The silence doesn’t mean that the process of a possible sale is dead. Quite the opposite, some hedge fund watchers say.
Cabela’s has been under pressure to make big changes after activist investor Elliott Management announced an 11 percent stake in October.
Thursday's fourth-quarter earnings report will be the first time Cabela's management has spoken publicly since the retailer announced in early December that it would undergo a “strategic review,” which often points to a sale of the company or parts of it.
An investment banker says the move could be a “red flag” pointing to a coming sale of the Sidney, Nebraska retailer. Other professionals who work with trusts and estates also said the transfer could point to a coming sale of the company.
Earlier this week, Cabela’s split the roles of president and chief executive. Scott K. Williams was appointed president and will report to Chief Executive Tommy Millner, who previously held both roles.
The change is part of the Sidney, Nebraska-based company’s “Vision 2020” plan, announced in October, the company said in a release. The plan scaled back new store growth and included other in-store changes after Cabela’s reported disappointing third-quarter earnings. The company announced the plan about a month after it had laid off nearly 70 people at its corporate headquarters.
Cabela’s on Tuesday said it would delay the 30-day window during which shareholders can nominate people to its board of directors. The move is a sign, some Wall Streeters say, of a number of possible scenarios.
This western Nebraska town has ridden out boom and bust cycles before, but with the fate of a major employer unknown, the stakes have never been higher.
A sale to a competitor or a sale of just part of the company are among the options still up in the air.
Uncertainty about the future of Cabela’s corporate headquarters hits during a new spurt of potentially $700 million in housing, medical, commercial and city development projects.
One of the ways activist investors wring money out of a company is by forcing it to sell off its real estate. When they target retailers, the activists often push companies to sell their real estate, which the retailers then lease back from a new entity.
About 2,000 jobs and a Fortune 1000 headquarters now hang in the balance in Sidney, Nebraska, population 6,800.
The term often is Wall Street-speak for a sale of a company or another big move. Cabela's chief executive said a sale is possible but isn't guaranteed.
Investors see a strong brand with long-term expansion projects. The chain also has a lucrative credit card business with almost $5 billion in loans, as well as real estate holdings worth about $1 billion. The company’s total market value is $3.2 billion.
Like many of the nation’s companies, Nebraska’s firms lag behind the goal to put women in at least 20 percent of boardroom seats. Still, of 11 Nebraska companies on the Fortune 1000 list, at least four corporate boards already include 20 percent women or more.
Cabela’s has hired a crisis communications firm that advertises itself as a "defender" of companies against activist investors as the retailer is reportedly looking for a buyer.
Campaign finance records show that billionaire Paul Singer, who founded New York-based Elliott Management in 1977, gave $10,000 to Pete Ricketts for Governor on Nov. 25, 2013. He also gave $25,000 to the governor’s campaign on Sept. 9 last year.
Why would Cabela’s — or any company — expose itself to such scrutiny? When it comes to taking a business public — especially a family-owned retail business — it’s all about the money.
Cabela’s stands out as the only U.S. retailer that owns a bank for the express purpose of issuing credit cards. Analysts familiar with Cabela’s say the importance of the retailer’s financial services segment can’t be overstated.
Cabela's has come under pressure from a so-called "activist" investor that has taken a big stake in the Sidney, Nebraska, company, saying it will press for big changes to boost the outdoor retailer's stock price.
Gov. Pete Ricketts said Friday he has spoken with Cabela’s Chief Executive in the wake of news an investor has amassed a large stake in the company and will press for changes.
Mum’s the word at Cabela’s. One consultant who helps companies and investors with such situations said the lack of response — even a simple acknowledgment of the news — is uncommon in today’s world of activist investors.
Founded in 1961, Cabela's employs more than 2,000 in Sidney, Nebraska, and 19,300 worldwide.
Stores opened in 2015 have underperformed expectations, forcing the company to re-evaluate plans for store openings next year and in 2017.
Sidney, Nebraska-based outdoor retailer Cabela’s said Thursday that it had laid off 4 percent of its corporate workforce, as part of “a corporate office restructure and reduction.”
The board of directors for Sidney, Nebraska-based Cabela’s has authorized the company to repurchase up to $500 million of its common stock over a two-year period.
Despite the decline, the company sees possibility for improvement and says it’s on track to meet its profit goals for the year, said Chief Executive Tommy Millner.