During a mandatory hearing yesterday involving West Marine’s Chapter 11 restructuring, bankruptcy trustee Linda J. Casey said something that caught the attention of at least one of the more than 170 participants, many of whom West Marine owes money: “The former chief executive officer received a $1.2 million bonus. Can you explain what that bonus was?”

In addition to noting the money paid to former CEO Chuck Rubin, who left West Marine in late 2025, Casey also mentioned a retention bonus of an undisclosed amount that West Marine paid to current CEO Paulee Day on May 1 — just 16 days before the company filed for bankruptcy.

The statements prompted David Kelton, owner of crab trap company American Blue Claw LLC, to ask whether it was possible to claw back any of that money.

“I am a small company that deals with West Marine,” Kelton said, “and when [I] hear bonuses of a million dollars going to these top people — I guess [this] goes to Ms. Day: Are you willing to give up some of your so-called bonuses or anybody else in the top tier to help the group down on the bottom?”

West Marine interim vice president Amir Agam responded earlier by saying that West Marine paid Day’s retention bonus with board approval “in order to make sure that they retain Ms. Day through the critical part of this restructuring.”

Shella Borovinskaya, an attorney and corporate restructuring associate at Young Conaway Stargatt & Taylor LLP, echoed his comment, saying that “retention bonuses were paid in order to ensure that key talent had stayed on through whatever transaction had materialized.” Borovinskaya added that a plan was instituted to cover a “number of individuals” considered to be critical.

The meeting, known as a 341(a), is a required step in the U.S. bankruptcy process where the trustee examines the debtor (West Marine, in this case) to verify the accuracy of its bankruptcy documents, review its financial details and status, and ensure that everything required to move forward is complete.

Creditors (in this case, vendors West Marine owes money) are notified of the hearing and invited to ask questions.

Following the meeting, Kelton told Trade Only Today in a phone interview that he received a $100,000 order from West Marine on April 7. “They still owe me $12,000,” Kelton said.

In response to the West Marine order, Kelton said, he ordered many rolls of the wire used to make crab traps the retailer sells.

“I had to figure out how to make use of all this material,” Kelton said. “But I’ve got [other customer orders] that will help me work through what I ordered.”

Kelton’s business is among hundreds of West Marine suppliers on the hook for goods shipped but not yet paid for. A court document lists 30 top vendors that West Marine owes from $697,082 to $8.5 million.

The next step in the process is a final hearing to consider approval of first-day motions before Karen B. Owens, chief judge on the United States Bankruptcy Court for the District of Delaware. It’s scheduled for June 11 at 2 p.m.

West Marine has stated that it intends to emerge from restructuring in August.