West Marine files for Chapter 11 bankruptcy
National boating retailer powerhouse West Marine filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on May 17, according to a court filing and reporting by PSB sister publication Boating Industry.
In a statement released by West Marine, the company has “entered into a Restructuring Support Agreement (RSA) with the support of its key financial stakeholders — including 96.2% of its term loan lenders, 100% of its FILO lenders, and 93.9% of its equity holders — to pursue a comprehensive restructuring transaction that will allow the company to deliver its capital structure while maximizing value and ensuring continued service to the boating community.”
Portage Point Partners is serving as the investment banker to West Marine in connection with its restructuring, Boating Industry reports.
Unpaid debts
According to the court filing, West Marine’s largest unsecured creditor is Garmin International, the global SOS satellite communicators company. It lists Garmin as having an $8.57 million balance. Virtual Supply, a distribution logistics company, follows with $5.8 million. Components and accessories manufacturer Sierra International has a $4.7 million balance due, and tackle producer East Penn Manufacturing Co. is owed $4.43 million.
Twenty-six additional creditors are listed, including Lippert Components Manufacturing, Lumitec LLC, 3M, AkzoNobel, Raymarine, Xylem and Navico.
West Marine’s 200 retail locations will remain open during the restructuring, according to the statement.
“West Marine has been a trusted partner to the boating community for decades, and we remain deeply committed to that mission,” says CEO Paulee Day. “The actions we are taking today will allow us to optimize our operations and rationalize our footprint, so that we can focus on continuing to serve our customers and community well into the future. I thank our dedicated crew members, our loyal customers and partners, and our financial partners for their continued support.”
