In the first stage of the deal, Gratco and Holiday Stationstores will buy out all Gander investors who own less than 30,000 shares of company stock. That will allow Gander to reduce its number of shareholders enough to deregister from the Nasdaq Global Market in compliance with Securities and Exchange Commission rules. Gander’s board expects to complete that by early next year. The St. Louis law firm of Greensfelder Hemker & Gale is providing Pratt with legal counsel in the deal.

After Gander becomes private, Gratco and Holiday Stationstores will offer to purchase the stock held by the remaining shareholders at the same price of $5.15 a share, according to the company. In the end, Pratt and the Erickson family intend to become equal partners in the business, according to SEC filings.

Gander spokesman David Ewald said the changes will have no impact on the company’s employees or management and is not expected to affect Gander’s number of stores or its online presence. He said Pratt “is definitely a long-term investor and a believer in the company.” Pratt declined to comment on his plans.

Gander boasts 119 locations in 23 states—a larger retail network than competitors Bass Pro Shops and Cabela’s. The chain is mostly concentrated in the Great Lakes region, and since 2003 has shifted to a warehouse-style format with new stores that range from 50,000 to 100,000 square feet. Taking a page out of Wal-Mart’s book, the company emphasizes an “everyday-low-price strategy.”

The $5.15-a-share price marks a 35 percent premium to Gander’s preannouncement stock price, but it is well below the company’s historical highs. Just over two years ago, Gander was trading above $10 a share.

Like many retailers, Gander has faced challenges in the down economy. In its quarter ended August 1, the company’s losses grew to $7.3 million, compared with $4.9 million during the same period last year. Over the past six months, Gander has lost $26 million, compared with a $29 million loss through the first half of fiscal 2008.

Quarterly results show modest increases in hunting equipment, firearms, camping and apparel sales. Marine and power-sports sales declined as the company got out of the powerboat and all-terrain-vehicles categories. The company also spent more on retail advertising, which cut into its profitability.

After Gander deregisters from the Nasdaq, it will continue its efforts to improve operating performance and reduce its debt, according to the company. Gander reported $42.1 million in long-term debt as of August 1, down from $50.4 million six months earlier.

One area where the company sees opportunities for growth is in its direct Internet and catalog sales. In December 2007, Gander acquired Overton’s, an Internet and catalog marketing company that targets recreational boaters and water-sports enthusiasts. Then, in August 2008, Gander launched Internet and catalog sales under the Gander Mountain brand name.

Such direct sales declined $2.2 million, or 5.4 percent, in the second quarter, and profits in the category fell 12 percent, compared to the same period last year. But Internet and catalog sales still generated a quarterly profit of $1.74 million. Gander plans further investments in its direct-sales efforts, and projects improved revenue and profits as its online and catalog operations becomes better established.