Interesting article on Cabela's

[Bill Bates]

It is interesting to see the difference in what people take away from that article.

I see it as an article talking about investment funds hurting their investors and the employees of a business who's business or some of the products those business sell as politically not desirable.

Right now companies in the firearms business are doing very well and it makes sense to invest in them. A funds main responsibility is to maximize its investors return. Firearms are a legal product. If they can give your investors a good return you are hurting your investors by boycotting them because you don't agree with it politically.

If Cabela's is for sale, the best thing for the employees would be to have a equity fund buy the company and continue to run it pretty much as is. If say a Basspro buys Cabela's they have a purchasing, HR, Legal, Property management, accounting department, etc. and they will not need to duplicate many of those departments. Cabelas is based in Sidney, NE a very small town where about of third of the population is employed by Cabela's. A sale where many of those people end up out of work will be devastating to the employees, their families and Sidney, Nebraska.

I think the author was saying that if a equity fund is making a moral judgement they should weigh all of the harms boycotting does. It harm in more ways than just one.

Again that is just this guys opinion.

 

[swsig]

Right now companies in the firearms business are doing very well and it makes sense to invest in them. A funds main responsibility is to maximize its investors return. Firearms are a legal product. If they can give your investors a good return you are hurting your investors by boycotting them because you don't agree with it politically.

I suspect that some of the "anti-gunners" are also stock manipulators. They drive down the price of a gun-related company's stock with their anti-gun rhetoric, then when the price gets low enough, they buy a bunch of stock and wait for the inevitable rise in the stock's price as gun lovers (that's us!) continue to buy the company's products. We can play that game, too. Just look for a good, well-managed company that stock-manipulating "antis" attack, then do as they do. When these guys learn that gun lovers are also benefitting from their actions, and are then able to pour their capital gains back into even more gun purchases, maybe they'll move on to manipulating hog bellies or something.

Caveat: I am not a stockbroker, nor do I even know one. Take my advice at your own risk.

 

[gregintenn]

Anybody have an explanation why Cabelas has built a number of stores just off the Tennessee border, but hasn't built one in Tennessee?

I like it because I don't have to pay sales tax on internet orders, but find it odd. Perhaps that is the reason.

 

[BC38]

It is interesting to see the difference in what people take away from that article.

I see it as an article talking about investment funds hurting their investors and the employees of a business who's business or some of the products those business sell as politically not desirable.

Right now companies in the firearms business are doing very well and it makes sense to invest in them. A funds main responsibility is to maximize its investors return. Firearms are a legal product. If they can give your investors a good return you are hurting your investors by boycotting them because you don't agree with it politically.

If Cabela's is for sale, the best thing for the employees would be to have a equity fund buy the company and continue to run it pretty much as is. If say a Basspro buys Cabela's they have a purchasing, HR, Legal, Property management, accounting department, etc. and they will not need to duplicate many of those departments. Cabelas is based in Sidney, NE a very small town where about of third of the population is employed by Cabela's. A sale where many of those people end up out of work will be devastating to the employees, their families and Sidney, Nebraska.

I think the author was saying that if a equity fund is making a moral judgement they should weigh all of the harms boycotting does. It harm in more ways than just one.

Again that is just this guys opinion.

I read it and got the same exact thing you did.
The one solution to the problem that I haven't seen proposed is an employee buyout. It has worked for a bunch of other companies, from airlines to trucking companies to retailers.
Since they employ so many people in so many locations, I'd think that they could raise the dough to buy the joint...

 

[hoosierone]

Years ago, I'm guessing late 90's, Cabela's opened a store in Hoffman Estates, Il, a far west suburb of Chicago. At the time, Hoffman Estates had an "assault rifle" ban which they agreed to repeal if Cabela's opened there.

Since then, Cook county (Chicago) passed a $25 tax on firearm purchases and just recently passed an ammo tax. Hoffman Estates is in Cook county.

I've heard that this has really hurt sales at this store. Cabela's was short sighted in opening a store in an anti gun state and a super anti gun county run by crooked Chicago politicians.

 

[bgrafsr]

Yep. Just ask Piggly Wiggly supermarket chain, but then, they don't exist anymore. Eventually family owned companies get torn apart by the kids, neglected, or just don't keep up with changing times and fail. There will always be a point in time when squabbles over money, control, or lack of control end things.



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This has happened to Longaberger Baskets in Ohio. A once thriving business went to hell after the kids took over and started taking money from the business.

 

[charlie sherrill]

If the kids don't mess it up, the grandkids certainly will. The nearest Cabela's from here (two hours) is in Gonzales, La. just south of Baton Rouge. They don't have much that I need because I can order it cheaper. I do like to go by there and look around when I'm in the area, usually for a gun show. I bought a couple of mags last week. Any other time Gander Mt., Academy's, and local shops will have to do unless I go to Mobile or Jackson to Bass Pro, which aren't much closer.

 

[S&WIowegan]

Sounds to me like the Cabela family needs to hire professional management.
Just about every family owned- started company eventually runs out of family members who can or choose to run the company.

Just FYI: Cabelas has been run by professional management since the IPO some years ago. The underwriters wouldn't do the deal unless some pros were brought in. What has happened to Cabelas is what happens to many fast growth retail chains. They grow at maximum speed to enhance the P/E and eventually reach saturation. Bass Pro and Gander Mountain are also building fast. Cabelas is undoubtedly burdened with very heavy real estate debt in the form of long-term lease obligations. Generally speaking, the only way to break these leases is via bankruptcy court. Also, there is market overlap with the big box retailers like Dicks, Sports Authority, etc. RIP Academy. This cycle is totally predictable and inevitable, sad as it may be.

Full Disclosure: I was an investment banker and an Investment Manager before I became a hick from the sticks.

 

[Rivoak]

I respectfully disagree. My wife shops weekly at our local Piggly Wiggly. There's one in nearly every small town around here.
About Us | Piggly Wiggly
Apparently there are over 600 of them.

Google "Piggy Wiggly out of business". There are still store operating under the name but the pig is dead.


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[HOUSTON RICK]

Not impressed with the Cabelas shops that I have been in. have not bought anything there.

 

[model70hunter]

Bass Pro has the money. Perhaps they are waiting until Cabelas stock tanks or they go bankrupt. Maybe they are seeing what too much growth does and will not make any move. I have done more business at Cabelas. Used to love their used guns and Library. They kept running up prices and shot themselves in the foot. Lost my business on guns, still buy ammo and other items.

 

[Muss Muggins]

My rule of thumb is that it is generally the third generation that loses the business . . .

 

[chud333]

As every business consultant, ever, has stated, "Failing to plan, is planning to fail."

Who knows? Might be just two brothers "Dream" that
through their hard work and dedication paid off.

Possibly neither brother had children that wanted to keep
that (tradition) going. Because of the level of commitment
it takes to stay successful these days ??? Who knows?

If that's the case it's just a darn shame for all those workers
in Sidney and elsewhere because that will completely gut that town.
I have been through there 3-4 times. Nice folks out there.


Chuck

 

[JSR III]

What is the company worth? Who knows, S&W just bought Crimson Trace and Taylor Products for like 90 million each. Maybe S&W will by it...

 

[Mulebuk Sam]

Whether you like Cabela's or not, the article is both thought-provoking and disturbing.

I personally like them and they are trying to pull out in my area if they can cut a deal with the town they are in with the land. Even the street they are on is named after them.

Hate to see them go because they are my go to connection to unload a gun to fiance another one.
Not so sure if it's their management or the changing attitudes in America.

Perhaps a little bit of both but it's very difficult to change attitudes when organizations like the NRA cannot even buy airtime on the major networks, completely shutout so all the general public hears is how evil anything to do with guns is.

My State is Big on hunting so if they leave it will hurt a good many.
It's all becoming a society of controlled sheep.

Stoned, Stupid and Broke. (easier to control that way)

 

[bushmaster1313]

I once had the pipe dream of banking up rewards points on a Cabelas credit card and after a number of years buying a Gun Library gun I would not otherwise get.

The talk on the internet about Cabelas going bankrupt or out of business made me realize that this was not a good business model.

 

[johngalt]

I like looking at their gun library, even though I think their stuff is priced too high.

They often have good prices on shirts, and stock tall sizes which are hard to find in other stores.

 

[retiredbadge8091]

Cabela's FINALLY built a store here in my state of NC. For many years, they ignored the SE US, and I always figured it was because of Bass Pro being there.
The new store is very nice and I've been a few times. It seems that prices are very high on a lot of the stock.
When they first opened many of my retired LE friends started working there as a p/t retirement job. After 2 years, they've all left. Most reported it was not as 'fun' at they hoped. Management was not responsive to employees scheduling needs (even though they promised upon hiring).
Most of these guys were very knowledgeable about the respective product lines and excellent choices, but management wanted to pay a pittance and not work within their schedules.
So - you can guess what happened after all these guys left. They hired teens and early 20's that were more knowledgeable about video games and basketballs.

I've since moved 3 hours away and have no need to go there.

Interestingly enough, I had the same experience with Home Depot. I chose to work there instead of my Cabela's because it was closer to home. A friend went to the Cabela's and when we compared notes it sounded like we were working at the very same store. I guess that's just life in retail. I'm back to being gainfully unemployed.

 

[snake803]

If a family owned business cant rely on family members to move up the ladder then they should at least bring in somebody who has an interest in the long term viability of the company.

Too many companies are run by professional CEO's.They move from one company to another with no skillset in any of them.Their only goal is to show a quarterly profit achieved by downsizing or selling off assets.After that wont work any longer they collect their millions in severance and stocks and move on to the next victim.

But then...What do I know!!

That's what happened to Kemper Corp. the insurance Co and sports arm... (Kemper open??).. got a new CEO, he gutted the CO. in about 2 years.. Left with a golden parachute and went on to rape another corp.. It is no more...
JIM...........

 

[the ringo kid]

Shawn McCoy of InsideSources.com has written an article on the future of Cabela's. Whether you like Cabela's or not, the article is both thought-provoking and disturbing. Here is the link:

How a Meaningless Attack on a Hunting Store Threatens Thousands of Jobs – InsideSources

Sounds to me like tha Cabella family is burnt out about being there. Also, more thann rich enough to retire. This is akin to a business I once had. I was busy working from 7am to past 10 pm-daily. After 5 years--I was burnt out.

Beseides their poor leadership--they just want out altogether.

Didnt realize id replied before but, just added an opine to the article.