Cabela's Inc. has announced in a press release that its board of directors is looking to explore and evaluate a wide range of strategic alternatives.
The company is looking to increase its value for shareholders.
The Wall Street Journal said that the company came under pressure from activist investor Elliot Management in late October.
Elliot revealed that it has an 11 percent stake in the company and said that they plan to talk to the company's board regarding a number of strategic options, including a potential sale.
The Wall Street Journal adds that Cabela's has struggled with weak profit recently due to the soft demand for its gear, especially in its foot and apparel categories.
The company has recently said that it plans to sell off unproductive assets as part of its cost-cutting effort.
Cabela's said in the press release that they have partnered with Guggenheim Securities, LLC to be its financial advisor in its strategic review.
The company also tapped Sidley Austin LLP and Koley Jessen P.C., L.L.O. as it's legal counsel.
Capela's adds in the press release that its board of directors and management team will be working closely with their advisers to proceed in a timely and orderly manner.
There is no assurance that the process, though, will result in a sale transaction or other strategic alternatives.
Tommy Millner, the CEO of Cabela's, said in the press release that the company still believes that its "Vision 2020 strategy will position Cabela's to be the world's best omnichannel retailer."
"That said, the Board is committed to taking actions to enhance value for shareholders and believes it is an appropriate time to explore potential strategic options that may drive further value," he said.
He adds in the press release that as Cabela's board undertakes this process, the company is "focused on the execution of its business strategy and remains fully committed to serving" the customers' needs.
