Outdoor retailer REI has plans to come to the Hamilton Place area. (Photo: REI)

As outdoor clothing and gear retailer REI plans its Chattanooga expansion, Gander Mountain is going out of business. 

Gander Mountain filed for Chapter 11 bankruptcy protection and announced it will close 32 of its 162 stores nationwide, including the one in Hixson, according to USA Today

REI has plans to open a store in the Hamilton Place area in the summer of 2018, according to the Chattanooga Times Free Press. 

And in October, officials announced that two stores similar to REI and Gander Mountain would combine: Bass Pro Shops has plans to acquire Cabela's in a $5.5 billion deal, but there have been recent reports that the deal is falling apart. Click here for more from Bloomberg.