West Marine has filed for voluntary protection under Chapter 11 of the United States Bankruptcy Code.
The company has entered into a Restructuring Support Agreement (RSA) with the support of its key financial stakeholders in order to ‘delever its capital structure while maximising value and ensuring continued service to the boating community’.
As part of the restructuring, Amir Agam has been appointed as interim vice president (temporary officer) of the company.
West Marine, US leading omnichannel provider in the marine aftermarket, offers a range of products ranging from marine electronics and safety gear to maintenance supplies.
According to the court filing, West Marine’s biggest unsecurred creditor is Garmin International which has a balance of $8.5 million. Lippert Components has a balance of $3.5 million, 3M has a balance of $2 million, AkzoNobel has a balance of $1.9 million and ACR Electronics and Raymarine both have balances of $1.9 million.
Remaining open for business
As part of the restructuring, Amir Agam has been appointed as interim vice president (temporary officer) of the company.
In a statement, West Marine emphasised that it remains open for business, with its approximately 200 retail locations across 34 states and Puerto Rico, online platforms, and the West Marine Pro App, remaining accessible to customers
“West Marine has been a trusted partner to the boating community for decades, and we remain deeply committed to that mission,” said Paulee Day, chief executive officer 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.”
And she thanked West Marine’s crew members, customers and partners, along with financial partners for their continued support.
Financial flexibility
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 behaviour.
The company says that by filing for bankruptcy protection, it is addressing these challenges by strengthening the balance sheet, reducing debt levels and improving financial flexibility.
In order to fund the company’s operations throughout the Chapter 11 process, an agreement has been reached with secured lenders to use its cash collateral to meet its obligations to customers, employees and vendors.
New financing
Lenders have also committed to providing West Mariney with new financing in support of its exit from Chapter 11.
West Marine says it has filed customary first day motions with the bankruptcy court seeking authority to continue operations without disruption, including continuing to pay employee wages and benefits and to maintain its customer programmes.
Approvals are anticipated to be received shortly.
West Marine was founded in 1968 and has grown from a small rope business in California into a leading retailer of core marine parts and accessories.
