According to documents filed in Federal court, Ambassador Marine has filed a petition for chapter 11 protection. The company said the bankruptcy filing will enable Ambassador to maintain normal operations in the ordinary course of business as it addresses a lawsuit filed by West Marine over a disputed bicycle recall.
A separate division of Ambassador sourced private label bikes for West Marine for several years. Ambassador claims in its court filings that “West Marine grossly mishandled what at most could have been a small bicycle recall, instead bullying and intimidating Ambassador to the point that it had no choice but to seek court protection.”
While in Chapter 11, the company intends to propose a Chapter 11 plan of reorganization through which it will reorganize around its core marine and consumer products business. Under the reorganization plan, the company proposes to pay trade creditors in full.
“Our faucet and sink division is unaffected by this and we will come out of Chapter 11 stronger and better than ever,” Scott Spiegel, president of Ambassador Marine, said.