West Marine Files for Bankruptcy

West Marine, Inc. 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.

To implement the transactions outlined in the RSA, West Marine has filed for voluntary protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

West Marine is open for business. Customers will continue to have access to their favorite marine products through the company’s approximately 200 retail locations across 34 states and Puerto Rico, online platforms, and the West Marine Pro App.

Like many in the boating community, West Marine has faced headwinds in recent years, including supply chain disruptions, extreme weather events, and shifts in consumer behavior. This action addresses these challenges by strengthening the balance sheet, reducing debt levels, and improving financial flexibility.

To fund the company’s ordinary course operations throughout the Chapter 11 process, the company reached an agreement with its secured lenders to consensually use its cash collateral, providing West Marine with sufficient liquidity to meet its obligations to customers, employees and vendors during the Chapter 11 cases. They have also committed to providing the company with new financing in support of its exit from Chapter 11. West Marine 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. The company expects to receive approval for these requests shortly.