US-based boat retailer West Marine has filed for Chapter 11 bankruptcy protection in Delaware, according to a court filing.
In an official statement, the firm says it remains open for business, and customers can still access products through its approximately 200 retail locations. The firm says it aims to emerge from Chapter 11 by mid-August.
The news comes two weeks after rumours of a potential bankruptcy surfaced.
West Marine, which operates out of Fort Lauderdale in Florida, is among the largest American retailers of boating, fishing, sailing and paddling supplies, operating over 200 stores in North America and Puerto Rico, and a major e-commerce site. The firm was founded in 1968.
A Chapter 11 filing allows a US company to keep operating while restructuring its debts under court supervision to avoid liquidation. This differs from a Chapter 7 bankruptcy, which usually means the business closes and its assets are sold off to repay creditors.
The privately held company, currently controlled by asset management firm Oaktree Capital Management and private equity firm L Catterton, is reportedly planning to close “a number of locations”, according to Bloomberg.
“West Marine has been a trusted partner to the boating community for decades, and we remain deeply committed to that mission,” says Paulee Day, chief executive of West Marine. “The actions we are taking today will allow us to optimise our operations and rationalise 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.”
West Marine plans to move its retail operations towards an “omnichannel” model, integrating in-store and online sales, while adapting its physical outlets to better serve professionals in the boating sector, Bloomberg reported in April.
The restructuring comes about three years after West Marine completed a debt deal known as a liability management exercise, in which L Catterton agreed to subordinate its own borrowings in the repayment hierarchy and provide fresh capital to the retailer.
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