From left, Sail chief financial officer Stefania Cella, chief executive officer Isabelle Lemay, and vice-president of marketing Catherine Venne pose at the company's head office and store in Laval, Que., on Tuesday.Andrej Ivanov/The Globe and Mail
Canadian retailer Sail Outdoors Inc. has undergone a management-led buyout, as part of a succession plan initiated by the leaders, who took the company from a single surplus store to a big-box chain selling recreation equipment.
The transaction, announced on Tuesday morning, means that three of the company’s top executives now hold a majority stake in Sail as it seeks to expand its stores into more markets.
“We’re really proud that Sail is staying in Canadian hands, with three women that really believe in the potential of the company,” president and chief executive officer Isabelle Lemay said in an interview.
The leaders, who acquired the company along with Ms. Lemay, are vice-president and chief financial officer Stefania Cella, and vice-president of marketing Catherine Venne.
The succession plan for ownership had been a continuing discussion, Ms. Lemay said, as Dale Tschritter and Daniel Desmarais – who acquired Sail in 2005 and expanded it from a single store to a chain in Ontario and Quebec – prepared for retirement.
Financial terms were not disclosed.
Sail, based in Laval, Que., was founded in 1983 as a surplus store in Beloeil, Que. The retailer now operates 12 locations specializing in gear for outdoor activities including hunting, fishing and camping.
The company had been working on an expansion plan before the pandemic forced Sail to file for bankruptcy protection in 2020, amid temporary store closings and industry-wide disruption. At the time, Sail closed six of its stores – including all locations under its Sportium banner – and emerged from the process with a dozen stores intact.
There has not been any expansion since: Sail’s last new store opening was in 2019. Sporting-goods retailers famously experienced a massive surge of purchases during the pandemic, as restrictions on travel and other activities pushed many people to take up camping, cycling, kayaking and other outdoor activities.
That trend was followed by a slump for many of the same purveyors of recreation equipment.
But sales began to bounce back last year – as some shoppers hit the replacement cycle for purchases they made during COVID and needed new equipment, and as others once again made plans to spend their vacations in Canada amid a U.S. travel boycott.
“During last summer, we saw lots of traffic in stores,” Ms. Lemay said, noting there was significant sales growth for items such as tents and hiking boots.
That aversion to spending tourism dollars south of the border has not let up, and the team is preparing for another busy summer, Ms. Lemay said.
The three executives who now control the company have joined the board of directors. Ms. Lemay takes over as chair from Mr. Desmarais, who will retain a seat on the board representing him and Mr. Tschritter. Le Fonds de Solidarité FTQ, which has held a stake in Sail since 2005, remains a major shareholder.
In the longer term, Sail is preparing to open roughly five new stores over the next five years. That is a somewhat more modest pace of growth than Sail had targeted in a plan announced last April – which estimated it would have eight new stores in that time – because it has taken longer than expected to find the right locations, according to the company.
The retailer currently has eight stores in Quebec and four in Ontario and is planning to expand its presence in markets within those two provinces where Sail does not already have a foothold.
“We still feel that the market is there for growth, and that Sail has a role,” Ms. Lemay said.