Millions of dollars in bonuses were paid to West Marine bosses, despite the company floundering. The revelation was made during a hearing involving the company’s Chapter 11 bankruptcy filing.
According to media reports, the former chief executive officer received a bonus of $1.2 million and an undisclosed amount was paid to current CEO Paulee Day just days before the company filed for bankruptcy.
The hearing was told that the retention bonuses were paid in order to ensure the company’s key talent stayed with the company during the restructuring transaction.
West Marine is set to close 59 stores across the US as part of its restructuring. The company is continuing to trade, operating its digital platforms and its physical locations.
Shift in consumer behaviour
The company employs around 2,600 staff and operates from a retail footprint of more than 200 stores across 34 states and Puerto Rico as a digital footprint through its eCommerce websites that reach domestic, international and professional customers.
The retailer has secured backing from its key lenders to fund its operations during the proceedings.
The Chapter 11 petition was filed on May 17 2026 and is intended to address the company’s challenges by strengthening the retailers’ balance sheet, reducing debt levels and improving financial flexibility.
West Marine’s filing has listed more than 100,000 creditors and debt obligations of nearly $550 million.
Around $55 million is required in annual lease payments for its stores, depleting the retailers’ liquidity.
West Marine was founded in 1968 as a small rope business in California. In recent years, the retailer has faced headwinds, including supply chain disruptions, extreme weather events and a shift in consumer behaviour.
