West Marine, the largest specialty boating retailer in the United States, filed for Chapter 11 bankruptcy protection on May 17, in the U.S. Bankruptcy Court for the District of Delaware.
The company entered court with a Restructuring Support Agreement in place, backed by over 90 percent of it lenders and equity holders.
“Like many in the boating community, West Marine has faced headwinds in recent years, including supply chain disruptions, extreme weather events, and shifts in consumer behavior. Today’s action addresses these challenges by strengthening the balance sheet, reducing debt levels, and improving financial flexibility,” said a West Marine press release.
To fund the Company’s ordinary course operations throughout the Chapter 11 process, West Marine reached an agreement with its secured lenders to use its cash collateral, providing it with sufficient liquidity to meet its obligations to customers, employees, and vendors during the Chapter 11 cases. Lenders have also committed to providing the chain with new financing in support of its exit from Chapter 11.
West Marine has filed customary motions with the Bankruptcy Court to continue operations without disruption, including continuing to pay employee wages and benefits and to maintain its customer programs. It expects to receive approval for these requests shortly.
CEO Paulee Day confirmed all approximately 200 retail locations and the West Marine Pro wholesale division will remain open during the process.
Bondoro lists Garmin as West Marine’s largest unsecured creditor, owed over $8 million.
For a more in-depth review the court filings, click here.
The bigger they are, the harder they fall. I hope Garmin Audio recovers their $$.