BoatUS is the leading advocate for boating safety in the US and A CRUISERS NET SPONSOR.
|
Key Lime Sailing Club, A CRUISERS NET SPONSOR, always has very special offers for their visitors! Key Lime Sailing Club is a unique slice of KEYS ENJOYMENT…give it a try and let us hear about your experience.
| |||||||||||||||||||||||||||||||||||||||||||||
|
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. West Marine Slinks Into BankruptcyCorporate Greed, New Economic Realities Behind Reorganization Push
Americas biggest marine supply store, West Marine filed for bankuptcy protection yesterday in Delaware as the result of run-of-the-mill corporate greed, online competition and the end of the post-Covid boat-buying bump. A box in the filing was checked off to indicate estimated liabilities of $500 million to $1 billion. The top 30 unsecured claims against the company total more than $66 million. The news release assured customers that West Marine would remain open for business during its reorganization, though less profitable stores are likely to be closed:
According to West Marine the restructuring will allow the company “to delever its capital structure while maximizing value and ensuring continued service to the boating community.” One assumes that means reducing debt. Filing With Lists of Equity Holders and Claim Holders
Founded in 1968 as a “discount retailer,” West Marine hummed along right along through the new millenium, buying up 66 stores from its only national competitor, BoatU.S., in 2003. After that, the company became a national monopoly with only a few regional chains for competition. The emphasis on “discount” waned. “We lost our compass or our altimeter when we bought BoatU.S.,” one retired executive said. “It was the beginning of the boutique West Marines, the most expensive place in town, which wasn’t our origin story.” And in 2017, West Marine went from publicly traded to private after a $338 million leveraged buyout by private equity firm Monomoy Capital Partners, a New York firm with more than $5 billion in assets. L Catterton, the largest global consumer-focused private equity firm in the world, took a controlling stake in 2021. One of the most knowledgable observers of this history is John Moore, editor of Powerboat News. Moore takes up the story:
Amazon and other online sources for marine parts steadily grew. West Marine customers, who had been grumbling about store prices for years, now grumbled because shelves were not being restocked, and in the case of items normally bought in pairs or groups, often only one could be had. There was less emphasis on the nuts and bolts of boating, more on fashion accessories. Against a backdrop of routine private-equity greed, the post-Covid boatbuilding bump ended. Consumer spending for luxury goods slackened under inflationary pressure. Consumer confidence fell to record lows as a result of the Iran War. Cheaper online options proliferated. Suddenly, West Marine’s ambitious but fragile business model had become unsustainable. LOOSE CANNON covers hard news, technical issues and nautical history. Every so often 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. | |||||||||||||||||||||||||||||||||||||
Cruisers’ Net Newsletter for this week has just been emailed via Constant Contact.
If you want to view the newsletter but are not signed up to receive them automatically, you can view it at https://conta.cc/4dlxbsA or see it below.
To automatically receive our emailed Fri Weekly Newsletter and Wed Fuel Report, click:
There is always plenty to do around Charlotte Harbor! While berthed at Fishermen’s Village Marina, A CRUISERS NET SPONSOR, you are certain to enjoy visiting Western Florida’s beautiful Charlotte Harbor/Peace River.
Fishermen’s Village’s Day of Celtic Music
Special Events & Community Relations
941.639.8721
Click Here To View the Western Florida Cruisers Net Marina Directory Listing For Fishermen’s Village
Click Here To Open A Chart View Window Zoomed To the Location of Fishermen’s Village
There is always plenty to do around Charlotte Harbor. While berthed at Fishermen’s Village Marina, A CRUISERS NET SPONSOR, you are certain to enjoy visiting Western Florida’s beautiful Charlotte Harbor/Peace River.
Special Events & Community Relations
941.639.8721
Click Here To View the Western Florida Cruisers Net Marina Directory Listing For Fishermen’s Village
Click Here To Open A Chart View Window Zoomed To the Location of Fishermen’s Village
| ||||||||
| ||||||||
|
Be the first to comment!