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WATSONVILLE, Calif. – Boating supplies retailer West Marine has decided to “phase out” use of the BoatU.S. trade name in its stores, the company reported last week in a SEC document.
The company’s Board of Directors made the decision after determining that “the conversion of nearly all of West Marine’s BoatU.S.-branded stores to West Marine-branded stores will reduce some costs and allow West Marine to operate more efficiently.”
As a result of the phase-out, West Marine will be required to recognize a non-cash impairment charge to non-current assets of approximately $2.0 million in the fourth quarter of 2005, the company reported.
West Marine’s rebranding of its BoatU.S.-branded stores also is expected to result in approximately $1.3 million of future cash expenditures, primarily to replace BoatU.S. signage and promotional materials, according to the retailer.
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