Camping World Holdings Inc. said it plans to close its action sports and outdoor specialty retailer The House.
The St. Paul, Minn. business, part of Active Sports LLC, includes a store on Owasso Boulevard in addition to a robust e-commerce site. The online store is currently having a 40% off liquidation sale.
Camping World disclosed its plans to exit and restructure the Active Sports business in a filing with the Securities & Exchange Commission Monday. The company said in its filing the decision stemmed from its review of underperforming business lines and estimated the closure will result in charges of $11 million to $16 million.
The company informed the Minnesota Department of Employment and Economic Development (DEED) of roughly 90 layoffs, a spokesperson for DEED confirmed.
A spokesperson for Camping World did not respond to a request for comment Tuesday.
A vendor speaking on condition of anonymity confirmed brands were informed by The House staff of the closure ahead of the liquidation. However, news of the wind down, from what is considered a fairly sizable Midwest account, was unexpected, according to the vendor.
Camping World doesn’t break down the financial performance of each of its brands. However, the company had been undergoing a shift in its business strategy in more recent years that re-focused its efforts on the core RV business.
Between 2017 and 2018, Camping World acquired 23 specialty stores, including the 2017 acquisition of Active Sports and the company’s The House business for an undisclosed price. Earlier that same year, Camping World had also acquired out of bankruptcy certain assets of Gander Mountain Co. and Overton’s Inc.
At the time of The House acquisition, Camping World CEO Marcus Lemonis said the deal “continues our effort to grow our understanding of the outdoor enthusiast and furthers our strategy of continuing to diversify both in activity and demographic.”
In 2019, Camping World began shedding parts of its specialty business, including 13 stores under the Uncle Dan’s and Rock Creek brands.
Near-Term Headwinds for The House
Camping World has seen softening of new RV demand more recently, with Lemonis telling analysts in February the pressures are expected to remain in the short-term as the company focuses on what he called its “legacy game plan of growth.”
“We will do what we can to continue to eliminate waste, convert low-performing assets and eliminate non-core, non-income generating businesses to allow for continued scale through acquisitions and new store openings,” said Lemonis, who is also known as the host of the CNBC reality show “The Profit.”
The company laid off nearly 1,000 workers in the fall, in addition to closing some stores in response to the current operating environment.
Camping World reported total revenue of $7 billion last year, which was up 0.8%. The company’s net income narrowed to $351 million in 2022, down 45.3% from the prior year.