West Marine CEO Paulee Day yesterday held a “Vendor Town Hall” Zoom session to assuage potential concerns among the company’s suppliers regarding its recent Chapter 11 bankruptcy filing.
“I am asking for your partnership as we lay a new foundation for the future of West Marine, creating a stronger business for all of you, the industry, and the many boaters and marine professionals that depend on us,” Day said. “Regarding our recent [bankruptcy] announcement, we’ve been working over the past several months with our key financial stakeholders to determine a path forward that will best secure our longevity and make us a sustainable company for decades to come.”
Day further clarified that West Marine stores and online shopping portals remain open and functioning, and that West is not liquidating assets.
“Chapter 11 is a legal process that will allow us to restructure by reducing our debt and putting us on more sustainable financial footing,” she said. “This process will strengthen our financial foundation and allow us to address the financial obligations that have served as an overhang on our business, hindered our performance and posed a significant threat to our longevity if we do not address them. It is extremely important to stress that we are not going out of business, and we are not liquidating.”
Day said the company plans to emerge from bankruptcy in mid-to-late August.
“The positive aspect is that we have the support of virtually all of our lenders and equity holders, as I mentioned, allowing us to expedite this process with a contemplated emergence date of mid-to-late August,” she said.
Day also assured vendors that payments on the company’s accounts will continue.
“We are taking the proactive step of facing our challenges head-on in order to fix them and to ensure our longevity. In the short term, and as reviewed in my letter sent to you on Monday … all payments delivered to the company after the date of filing will be made in the ordinary course of business.”
In closing, Day said: “I often use the analogy with our crew members that if we are on a boat together in choppy seas, by working together with all hands on deck and through transparency, collaboration and great teamwork, acting as one crew, we can chart the course and navigate together to smoother seas. Thank you in advance for navigating those seas with us. By working together effectively, we will succeed together by keeping the boating community strong, active, healthy and growing.”
