West Marine files for Chapter 11 as restructuring pressures mount

August 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

August 2026 Issue

West Marine, the largest boating and marine supplies retailer in the US, filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware in May.

According to a statement announcing the filing, the company’s bankruptcy process is backed by near-unanimous lender support. West Marine secured a restructuring support agreement with 96.2 percent of its term loan lenders, 100 percent of its first-in, last-out (FILO) lenders and 93.9 percent of its equity holders ahead of the voluntary filing.

Court filings list the largest unsecured trade creditors, with Garmin International leading at $8.57m, followed by distribution company Virtual Supply at approximately $5.8m and Sierra International at $4.7m. East Penn Manufacturing is owed $4.43m. Other creditors with claims in the $1m to $4m range include Lippert Components, Lumitec, 3M, AkzoNobel, Raymarine, Xylem and Navico.

General unsecured creditors are expected to share a distribution pool reported at $250,000, subject to plan confirmation. The company has listed assets and liabilities each in the $500m to $1bn range.

The primary restructuring track would convert approximately $251.2m in term loan claims into new equity, while asset-based lending and FILO claims are expected to be paid in full or rolled into exit facilities. A secondary track, namely a sale to a third party, remains available if a superior offer emerges during the process.

West Marine was founded in 1968 as a small rope business in California and has been operating for more than five decades. It runs more than 230 physical stores across the US alongside e-commerce platforms, making it the dominant bricks-and-mortar presence in the US marine retail sector.

The company was publicly traded for many years before going private. Monomoy Capital Partners acquired the company in a leveraged buyout valued at approximately $338m in 2017. L Catterton took a controlling stake in April 2021, with new debt financing provided by Barclays, Golub Capital and Nomura.

In 2023, West Marine completed an out-of-court restructuring of approximately $800m in debt. L Catterton injected roughly two-thirds of a reported $150m capital infusion, and Oaktree Capital Management gained joint control as part of the arrangement. That deal bought the company time but did not resolve underlying trading pressures, which continued through 2025 and into 2026.

Much of the company’s debt burden stems from leveraged buyout financing rather than prolonged operating losses. However, rising interest rates from 2022 onwards increased debt servicing costs, while discretionary consumer spending weakened.

Despite entering Chapter 11, West Marine continues trading, securing agreement with lenders to use cash collateral to maintain liquidity and meet obligations to customers, employees and suppliers. Lenders have also committed new financing for its exit. The company filed first-day motions to ensure uninterrupted operations and expects court approval shortly during the smooth restructuring process.

“West Marine has been a trusted partner to the boating community for decades, and we remain deeply committed to that mission,” said Paulee Day, chief executive of West Marine. “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.”

The restructuring reflects broader pressures across the boating industry. Companies in the sector have faced sustained headwinds from supply chain disruption, extreme weather events and shifting consumer behaviour. Higher borrowing costs and softer demand for discretionary goods have compounded these challenges, placing additional strain on leveraged retailers such as West Marine.

Richard Summerfield