In response to news of Genmar Holdings filing for Chapter 11, marine industry giant Brunswick Corp. chose to focus on the state of the market and expectations for its own future rather than the impact on the industry or Genmar.
“Genmar Holdings’ announcement that it has filed for bankruptcy and Chapter 11 reorganization protection reflects the difficult global economic conditions in which we are operating as well as the unprecedented difficult marine market conditions,” the company said in a statement released yesterday afternoon.
Citing the impact of a decline in market demand, a weakened economy, tighter credit and reduced dealer access to wholesale financing, the company suggested the current economic and market environments “require effort and focus very different from that of normal ‘business as usual.’”
“At Brunswick, we are successfully managing through these difficult conditions by (1) maintaining solid liquidity without additional borrowings, (2) remaining focused and taking appropriate actions to maintain the health of our dealers, and (3) continuing to position ourselves to exit this downturn as a stronger company,” Brunswick said in the statement. “Although market conditions remain difficult, we at Brunswick remain confident that we will come out the side of this unprecedented downturn a healthy and viable business.”
Yamaha Marine Group also put out a brief statement in response to the bankruptcy yesterday. It read: “As a long-term supplier to many Genmar boat companies, Yamaha Marine Group regrets the announced bankruptcy of Genmar today. We have many friends and associates at Genmar, and we have worked with them for many years. We wish them the best in this difficult time and hope they will emerge from bankruptcy a stronger and better company. Yamaha has a long history of working with Genmar and we hope to continue to do so in the future.”
- For more of the latest news, click here.