West Marine has cancelled its asset auction, having received no qualified bids by its June 26 deadline.
Instead the marine retailer will now restructure through recapitalisation rather than a sale to a third party.
The latest filings with the U.S. Bankruptcy Court for the District of Delaware follow on from a Chapter 11 filing and the announcement of 59 confirmed store closures across 22 states.
The company entered into a Restructuring Support Agreement in May 2026 which had two outcomes – either the sale of the business or a standalone recapitalisation with an exchange of debt for equity.
Voting deadline
Under the recapitalisation, around $251 million of debt will convert into 100% of equity in the reorganised company subject to dilution from a management incentive plan. The plan has been approved by major lenders, however unsecured creditors will loose out.
The claims from these creditors is estimated to be between $99m and $109m, but projected to recover between 0.2 to 0.3% if the class accepts the plan. If the class rejects the plan, they are set to receive nothing.
The voting deadline is scheduled for July 31 with a combined confirmation hearing set for August 11.
West Marine is aiming to emerge from Chapter 11 protection later in August 2026.
Throughout the process, West Marine has emphasised that it remains open for business, with around 200 stores still trading.
West Marine has cited supply chain disruptions, extreme weather events and shifts in consumer behaviour for its financial troubles.
