West Marine Inc. (together with its subsidiaries and affiliates, "West Marine" or the "Company"), the nation's leading omni-channel provider in the marine aftermarket, today announced that it has entered into a Restructuring Support Agreement ("RSA") with the support of its key financial stakeholders, including 96.2% of its term loan lenders, 100% of its FILO lenders, and 93.9% of its equity holders, to pursue a comprehensive restructuring transaction that will allow the Company to deliver its capital structure while maximizing value and ensuring continued service to the boating community.
According to the court filing, West Marine's largest unsecured creditor is Garmin International, listed as having an $8.57 million balance. Virtual Supply Inc., a distribution logistics company, follows with $5.8 million, components and accessories manufacturer Sierra International Inc. has a $4.7 million balance due, and tackle producer East Penn Manufacturing Co. Inc. is owed $4.43 million. Twenty-six additional creditors are listed and include Lippert Components Manufacturing, Lumitec LLC, 3M, AkzoNobel, Raymarine, Xylem and Navico.
West Marine's 200 retail locations will remain open during the restructuring, according to the statement.
"West Marine has been a trusted partner to the boating community for decades, and we remain deeply committed to that mission," CEO Paulee Day said in the statement. "The actions we are taking today will allow us to optimize our operations and rationalize our footprint, so that we can focus on continuing to serve our customers and community well into the future. I thank our dedicated Crew Members, our loyal customers and partners, and our financial partners for their continued support."
To fund operations throughout the Chapter 11 process, West Marine reached an agreement with its secured lenders to consensually use its cash collateral, providing it with sufficient liquidity to meet its obligations to customers, employees and vendors. The lenders have also committed to providing the company with new financing in support of its exit from Chapter 11. The company has filed customary first day motions with the bankruptcy court seeking authority to continue operations without disruption, including continuing to pay employee wages and benefits and to maintain its customer programs.