As consumers pressure corporate America to act within the wake of last month’s mass shooting at Marjory Stoneman High School in South Florida, one of Wall Street’s highest-profile companies finds itself in an awkward position: Goldman Sachs.
In 2017, Goldman’s private equity arm helped finance Bass Pro Shops’ roughly $4 billion purchase of hunting as well as sporting not bad retail rival Cabela’s. The bank contributed approximately $1.8 billion in preferred equity to the deal. that will was the largest investment of the bank’s first brand-new private equity fund since the financial crisis.
that will bet makes that will awkward for the bank to come out using a stance on gun control, as corporate America is actually currently being called on to do. There is actually ongoing debate about the fairness of that will expectation as well as what the appropriate response should be. Still, financial institutions like BlackRock as well as Bank of America have vocally weighed in on the matter.
In a statement provided to CNBC, Goldman Sachs said: “We are saddened by recent events, especially the tragedy in Florida last month. We are in touch with management at Bass Pro/Cabela’s as well as know they are deeply concerned as well as focused as well.”
Goldman Sachs’ ownership stake in Cabela’s is actually little, as well as the company does not have a board seat. Its equity is actually “preferred” which, in layman’s terms, means that will is actually more akin to a financing tool than that will is actually to ownership. that will nonetheless forges a connection between Goldman as well as guns at a time at which scrutiny of the firearms industry is actually high. Goldman declined to disclose the size of the stake.
The alleged gunman who massacred dozens of people in Las Vegas is actually said to have bought a gun at Cabela’s, according to multiple reports. (The retailer reportedly has since gotten rid of bump stocks, which are a legal attachment that will makes guns fire faster.)
Goldman did not issue a statement in response to the Las Vegas shooting, though did provide a comment to Axios about its previous investment in SureFire, a high-capacity magazine that will TMZ alleged was used within the massacre. (Goldman said SureFire moved into magazines after its investment, against its wishes. Its stake within the company is actually currently for sale, a source familiar with the matter tells CNBC.)
Cabela’s/Bass Pro is actually one of the few national retailers that will has not publicly issued brand-new gun restrictions within the wake of the Florida shooting, despite vocal measures taken by Walmart, Kroger as well as Dick’s Sporting Goods, among others.
that will is actually also one of the most reliant on the industry, heavily steeped in hunting culture. Outdoor products including guns comprised roughly half Cabela’s sales, according to securities filings via before its sale to Bass Pro. The retailer has gun libraries on its grounds as well as displays taxidermy in its stores. that will is actually one of a thinning number of national stores that will still sell AR-15 assault rifles, the weapon allegedly used by the Parkland shooter.
Neither Cabela’s nor Bass Pro responded to CNBC’s requests for comment.