West Marine Files for Chapter 11 Bankruptcy Protection

West Marine, the largest boating and marine supplies retailer in the United States, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware, the company confirmed on May 17.

The filing is backed by near-unanimous lender support. West Marine secured a Restructuring Support Agreement (RSA) with 96.2% of its term loan lenders, 100% of its FILO lenders, and 93.9% of its equity holders ahead of the voluntary filing.

PBN reported earlier this month that restructuring talks were under way after the company missed debt covenants and entered negotiations with lenders.

West Marine says it remains open for business. Its approximately 200 retail locations across 34 states and Puerto Rico continue to operate, alongside its online platforms and Pro App. The company has filed customary first-day motions seeking court authority to continue paying employee wages and benefits and to maintain customer programmes.

Chief Executive Officer Paulee Day said:

“West Marine has been a trusted partner to the boating community for decades, and we remain deeply committed to that mission. 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 company cited supply chain disruptions, extreme weather events, and shifts in consumer behaviour as contributing factors in its financial difficulties.

Ownership and Debt Background

West Marine was founded in 1968 as a small rope business in California. Monomoy Capital Partners acquired the company in a leveraged buyout valued at approximately $338 million in 2017, a transaction that loaded around $800 million in debt onto the company’s balance sheet. L Catterton took a controlling stake in April 2021.

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

The $800 million was not accumulated through years of trading losses. It was loaded onto West Marine’s balance sheet when the company was acquired using a leveraged buyout structure — the acquiring firm borrows against the target company’s assets, and the debt sits on the company’s books, serviced from its own trading cash flow. When interest rates rose sharply from 2022, the cost of servicing that debt increased at the same time as consumer spending on discretionary items began to soften.

Funding During Chapter 11

To fund operations throughout the Chapter 11 process, West Marine has reached an agreement with its secured lenders to use cash collateral. Those lenders have also committed to providing new financing to support the company’s exit from bankruptcy.

Advisors

West Marine is represented by Kirkland & Ellis LLP and Young Conaway Stargatt & Taylor LLP as co-counsel, with Portage Point Partners acting as investment banker, FTI Consulting as restructuring and communications adviser, and Hilco Global as real estate adviser.

Additional information on the restructuring process is available at WestMarineRestructuring.com. Bankruptcy court filings are hosted at veritaglobal.net/westmarine.