West Marine Files for Chapter 11 Bankruptcy
On May 17th, West Marine filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, according to a court filing.
The company released a statement, saying 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.”
Unpaid Debts
According to the court filing, West Marine’s largest unsecured creditor is Garmin International, listed as having an $8.57 million balance. Virtual Supply Inc., a distribution logistics company, follows with $5.8 million, components and accessories manufacturer Sierra International Inc. has a $4.7 million balance due, and tackle producer East Penn Manufacturing Co. Inc. is owed $4.43 million. Twenty-six additional creditors are listed and include 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,” CEO Paulee Day said in the statement. “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.”
