West Marine to Close 32 More Stores as Chapter 11 Restructuring Expands

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West Marine has announced plans to close an additional 32 retail locations, bringing the total number of stores slated for closure to 91 as the company continues its Chapter 11 bankruptcy restructuring.

The latest round of closures follows the company's initial announcement in June that they would enter Chapter 11 bankruptcy protection. Shortly thereafter, they announced 59 stores across 23 states would close as part of a court-supervised restructuring process. Last week, the restructuring process hit one of its first major hurdles when an asset auction was cancelled after no qualified bids emerged.

Under the bankuptcy protection plan, the Florida-based parts had two potential tracks to pursue: to either reorganize through a debt recapitalization, or sell some or all of its assets, but only if a third-party offer produced greater value for stakeholders. When no qualifying bids emerged last week, the process has pivoted towards the recapitalization plan.

As part of the recapitalization plan, the newly released list of closing locations spans 14 states and was published on the company's store closures webpage. West Marine had over 200 retail locations across North America before announcing its Chapter 11 filing.

According to the company, the additional closures are part of its ongoing evaluation of its retail footprint while operating under Chapter 11 protection.

"We recently made the difficult decision to close select store locations. While this change wasn't easy, our commitment to you hasn't changed one bit," reads a statement on the store closures webpage. "West Marine is open, stocked and ready to help with everything you need to get back on the water."

The company also says it is working to help customers transition to nearby locations where possible and will continue serving customers through its remaining stores, website, and mobile app.

The newly announced closures include stores in California, Connecticut, Florida, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, Texas and Virginia.

The expanded closure list comes just days after West Marine canceled its planned bankruptcy auction after no qualified bids were submitted by the court-established deadline. With no competing offers received, the company is expected to proceed with its recapitalization plan. They have made no comments regarding more potential closures in the near future.

West Marine filed for Chapter 11 bankruptcy protection in May, citing mounting financial pressures that included declining discretionary consumer spending, supply chain disruptions, rising operating costs, increased fuel prices affecting boating activity, and significant long-term lease obligations. At the time of the filing, the company said it intended to continue operating while restructuring its business.

When the first 59 store closures were announced in June, court documents showed the retailer planned to reduce its brick-and-mortar footprint by nearly one-third while continuing to operate more than 180 locations across the United States and Puerto Rico.

The addition of 32 more stores marks another unfortunate step in the retailer's restructuring and brings the total to 91 affected locations.

Boaters can see the published list of affected locations on the West Marine website. There is also an FAQ at the bottom to get information about retail transactions, like using existing gift cards, returning or exchanging merchandise, or using existing warranties on purchased products.

West Marine is privately owned and controlled by private equity firms Oaktree Capital and L Clatterton. #news #westmarine