Investor Balked at Saving Catalina, Company President Told Workers (Video) – Loose Cannon
Cruisers Net publishes Loose Cannon articles with Captain Swanson’s permission in hopes that mariners with saltwater in their veins will subscribe. $7 per month or $56 for the year; you may cancel at any time.
When all else fails, try journalism. Investor Balked at Saving Catalina, Company President Told Workers (Video)Nine Unfinished Boats; President Goes to Tartan
Catalina Yachts President Patrick Turner stood before a couple dozen employees, explaining to them that the company needed an infusion of capital to stay in business. Catalina’s new owner, Michael Reardon, had been wooing a potential investor who ultimately refused to commit, Turner said, before announcing that they were all being laid off. “Michael, our owner, has done his part in getting someone involved, the investor.” Turner told workers at Catalina’s Largo, Florida, facility. “The investor was asking questions, and we’d keep answering, and he keeps asking more questions.” Reardon was owner of Daedulus Composites, a boatbuilder in Edenton, North Carolina. He purchased the assets of Catalina and True North powercraft from Catalina’s corporate ownership in California (California Catalina) in May. In August, he bought Tartan Yachts and two other brands. Soon after Turner closed down the Florida Catalina facility earlier this month, his LinkedIn page began listing him as president of Tartan Yachts, which is in Ohio. Layoff Video, October 14, 2025 On September 18, California Catalina filed a lawsuit against Reardon for non-payment of rent for the Florida Catalina factory and, by default, the $1 million promised for purchase of company assets. The suit listed the following boats as collateral; nine of the 11 are in various stages of construction, some near completion.
As reported earlier, Florida Catalina employees were working without pay for the last five weeks before the shutdown. As it happens, the company was also “out of trust” with its suppliers, too. No more materials or gear on credit. Catalina’s parts people began sourcing supplies from Amazon in an effort to finish boats. Unlike other builders who employ a series of “draws,” collecting a percentage of the purchase price at specified construction milestones, Catalina Florida took a single down payment with the balance due at delivery. For example, a C-446 goes out the door for more than $600,000, so revenue generated at delivery of even a single boat is substantial. Meanwhile, the workforce (many of them who were making just $16 an hour) are hoping someone reopens the factory so Sail Annapolis and others can get their boats. Michael Reardon has lost control of the building, having been evicted as a consequence of California Catalina’s lawsuit against him. So, some employees now hope that the people behind California Catalina—the family of the late Frank Butler—will get the resin flowing again and push those nine boats out the door. LOOSE CANNON covers hard news, technical issues and nautical history. Sometimes he tries to be funny. Subscribe for free to support the work. If you’ve been reading for a while—and you like it—consider upgrading to paid.
© 2025
|
Be the first to comment!