As part of its strategic review, 32 underperforming retail locations will begin a shutdown process in next several weeks.
According to the Twin Cities Pioneer Press, Alabama locations that will close include stores in Gadsden, Mobile, Montgomery, and Tuscaloosa. The company is now headquartered in Saint Paul, Minnesota and once had 162 stores and over 5,600 employees.
Clint Davis covers entertainment and trending news topics for the Scripps National Desk.
The company said, like other retailers, it has seen patterns shift from direct-to-customer sales to e-commerce.
Friday's bankruptcy announcement wasn't the first for Gander Mountain.
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In Wisconsin, the Germantown and Eau Claire stores will be closed.
The release also said that the company is in "active discussions with a number of parties" that are interested in the sale. The company anticipates a winning bid will be approved in early May and the sale will close by May 15.
Gander Mountain filed a Chapter 11 reorganization petition in federal bankruptcy court in Minnesota today.
In a statement, the company said it "generally expects to conduct normal business operations during the pendency of its restructuring". The release stated that employee pay will continue to arrive on time and in full, that employee benefits will remain in place and that retirement accounts are intact.
Gander Mountain was founded in 1960 in Wilmot, an unincorporated community in Kenosha County, as a catalog retailer.