West Marine Sheds $265 Million in Debt and Exits Chapter 11 Bankruptcy

West Marine in Charleston, South Carolina

West Marine has emerged from Chapter 11 bankruptcy protection after completing a financial restructuring reducing the company’s debt by more than $265 million and provided an additional $10 million in exit financing.

The Fort Lauderdale, Florida-based marine retailer announced the completion of the restructuring this week, saying the process has positioned the company to continue operating through approximately 100 retail locations, its online platform, and West Marine Pro—its commercial division serving the marine industry. The West Marine Pro division accounts for more than 40 percent of West Marine’s annual revenue.

“Today marks an important milestone for West Marine and the beginning of an exciting new chapter for our business,” said Paulee Day, CEO of West Marine, in the company’s announcement.

The restructuring follows several years of financial turmoil. In 2023, the company completed a liability management transaction that restructured approximately $800 million of debt and brought approximately $125 million in new funding from private equity group L Catterton, who are co-owners of the company with Oaktree Capital Management. The 2023 transaction was intended to ease the company’s debt obligations and avoid entering bankruptcy proceedings.

However, by May 2026, West Marine formally entered Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The company filed on May 17 after reaching a restructuring support agreement backed by the majority of its financial stakeholders. Court filings indicated the company had approximately $549 million in debt and about $55 million in annual lease obligations.

In early June, the company announced it would be closing 59 retail locations despite initially stating it did not intend to close retail stores. An additional 32 stores were marked for closing in late July, bringing the total number of closures to 91 from the initial portfolio of over 200 locations. The closures span 28 U.S. states.

With the new restructuring, West Marine is set to gain greater financial flexibility to continue operations, while still being able to invest in products and services across its retail, digital, and commercial operations. The company did not disclose its remaining debt balance or the complete terms of its post-restructuring capital structure.

“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,” Day said.

West Marine claimed its financial troubles were affected by declining consumer demand following the pandemic-era boating boom, rising operating costs, supply-chain disruptions, inventory challenges, inflationary pressures, adverse weather, and long-term leases at some locations.

The Chapter 11 plan initially provided two potential paths: a recapitalization of the company through a debt-for-equity transaction, or a sale of some or all of the business if a qualified third-party offer provided greater value to stakeholders.

In late June, West Marine established an auction process as part of that dual pathway, allowing potential buyers to submit offers for the company or its assets. The June 26 deadline passed without any qualified bids, forcing the auction to be cancelled and the company shifting toward the recapitalization plan.

Under the recapitalization plan, approximately $251.2 million in loan claims were converted into 100 percent of the equity in the reorganized company. Existing shareholders were expected to lose their equity interests, with ownership transferring to holders of West Marine’s term-loan debt. A Delaware bankruptcy judge approved West Marine’s restructuring plan in August, clearing the path for the company to complete the Chapter 11 process.

West Marine says it will continue operating its approximately 100 stores, website, and West Marine Pro business.

“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,” Day said.

The restructuring has reduced its debt by more than $265 million and added $10 million in exit financing. West Marine said the additional financing will provide liquidity as it moves forward with its new business model.

The company was founded in 1968 as a small rope business in California and grew into a major U.S. retailer of marine parts and accessories. Its product ranges include marine electronics, safety equipment, maintenance supplies, and clothing.

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