Tuesday, May 28, 2024
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Tommy’s Boats placed in receivership

Tommy’s Boats has been placed under a court-appointed receivership according to a news report published in Crain’s Grand Rapids Business.

It is understood a crisis management consulting firm has been appointed as the receiver for Tommy’s Boats.

It is alleged that Tommy’s Boats owes more than $118 million to its lenders, M&T bank which has sued the boat dealership.

Tommy’s, which operated out of 16 locations across the US, is currently holding a parts liquidation sale.

Tommy’s Boats is also engaged in a legal fight with its long-time OEM partner Malibu Boats.

In April 2024, Tommy’s Boats filed a federal lawsuit against Malibu Boats for several unresolved business issues.

In a statement, Tommy’s said it had been a provider of Malibu Boats for over a decade but claimed Malibu of a ‘fraudulent scheme’ whereby Malibu pressured the dealership to take on more boats.

Tommy’s also accused Malibu of sending high-priced vessels to the dealership.

“We are very appreciative of our incredible partnership over the years and for the dedication and hard work of Malibu’s employees,” said the statement.

Impasse

“During this time, we have built relationships with customers and employees that are irreplaceable.

“Unfortunately, after multiple attempts to resolve the issues between Tommy’s and Malibu, we were left with no choice but to allow the legal system to address the impasse.”

The statement continued: “While we were disappointed in Malibu’s public comments this week that mischaracterised the issues and our relationship, we look forward to more productive discussions in court.”

Malibu Boats has stated it will ‘vigorously defend itself against the claims made by Tommy’s’.

In a statement, Malibu Boats said: “Tommy’s was formerly a long-time dealer partner of ours, and we ended our relationship due to concerns about Tommy’s own conduct and its financial soundness.

“Indeed, Tommy’s lender is also suing it for violating the agreements Tommy’s used to finance the purchase of our boats. We will always act to protect our business, our customers and our shareholders.

“Any and all boats that Malibu sold to Tommy’s were ordered by Tommy’s. Malibu only sold boats to Tommy’s that Tommy’s ordered, and Malibu fulfilled its obligations under its agreements with Tommy’s. We value our relationships with our dealer partners, and we live up to our agreements.”

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