West Marine exits bankruptcy after slashing store footprint
The nation’s largest retailer of boating and marine supplies has emerged from Chapter 11 with less debt and fewer stores.
West Marine Inc., which filed for bankruptcy protection in May, said it has completed its comprehensive financial restructuring. The company has reduced its debt by more than $265 million and obtained an additional $10 million in exit financing to bolster its business in its next phase.
West Marine closed approximately 100 stores — or half its footprint —during the past several months. It exits bankruptcy with approximately 100 retail stores, along with its online platform and West Marine Pro business.
In announcing its bankruptcy filing in May, West Marine noted that, like many in the boating community, it had faced headwinds in recent years, including supply chain disruptions, extreme weather events and shifts in consumer behavior. The company filed with $549 million in outstanding debt and $55 million in annual lease obligations it could no longer absorb.
“Today marks an important milestone for West Marine and the beginning of an exciting new chapter for our business,” said CEO Paulee Day. “Throughout this process, we remained focused on what matters most: serving customers, supporting the boating community, and preserving the legacy of a company that has been helping people enjoy time on the water for generations. Thanks to the support of our customers, vendors, partners and financial stakeholders, and the unwavering dedication of our crew members, we are emerging as a stronger company positioned to build on momentum and serve the boating community for years to come.”
West Marine is advised in the matter by Kirkland & Ellis and Young Conaway Stargatt & Taylor as co-counsel, Triple P Securities as investment banker, and FTI Consulting Inc. as restructuring and communications advisor. Hilco Real Estate, LLC served as real estate advisor.
Founded in 1968, West Marine has grown from a small rope business in California into the nation’s leading retailer of core marine parts and accessories for boating, fishing, and sailing enthusiasts and marine industry service professionals.
