West Marine Readies Possible Bankruptcy to Close Stores
by Reshmi Basu, Bloomberg News
Boat retailer West Marine Inc. is laying the groundwork for a potential Chapter 11 bankruptcy to restructure its debt, including leases, according to people with knowledge of the matter.
The privately held company, controlled by Oaktree Capital Management and L Catterton, is planning to close a number of locations as part of the workout talks, said the people, who asked not to be identified discussing a private matter. The chain’s website lists more than 230 boating-supply and fishing-focused stores across the country.
While a Chapter 11 is emerging as the most likely outcome for the restructuring talks, discussions are ongoing and no final terms have been made, the people familiar added.
The company is working with Portage Point Partners, FTI Consulting and Kirkland & Ellis. Representatives with the company and Oaktree declined to comment, while messages left with L Catterton were not returned.
West Marine is looking to shift its retail business toward a so-called omnichannel approach — where sales at stores and online work in tandem — while tailoring its physical locations to professionals in the boating trade, Bloomberg previously reported.
The restructuring talks come some three years after West Marine inked a debt deal known as a liability management exercise, through which private equity firm L Catterton agreed to push down its own borrowings in the repayment line and inject fresh money into the retailer.