West Marine Inc., the largest boating and marine supplies retailer in the United States, announced it would close an additional 32 retail locations, joining 59 previously announced closures for a total of 91 store shutdowns. The closures are part of the company’s Chapter 11 bankruptcy restructuring filed in the United States Bankruptcy Court for the District of Delaware.
The retailer attributed its financial difficulties to multiple factors including supply chain disruptions, extreme weather events, and shifting consumer spending patterns. The boating industry has faced headwinds as discretionary spending remains below 2021 baseline levels. Industry data showed new boat retail unit sales dropped 8.8% year over year to 215,237 units in 2025, compared to 236,070 units in 2024. Most boat owners earn less than $100,000 annually and purchase smaller, more affordable vessels, making the sector particularly sensitive to consumer confidence and credit availability.
West Marine’s restructuring plan involves converting roughly $251.2 million in term loan claims into 100 percent of the new equity interests in the reorganized company under a Restructuring Support Agreement backed by secured lenders. The company’s total outstanding obligations amount to $429.3 million. The plan faces challenges regarding general unsecured creditors, who owe between $99.3 million and $109.2 million, including major vendors such as Garmin International, Virtual Supply, and Sierra International. A planned asset auction was canceled after no qualified bids emerged.
The combined confirmation hearing was postponed from July 30 to August 11. The retailer intends to continue operations and has secured lender approval to use cash collateral and obtain new financing to support its exit from Chapter 11. West Marine plans to transform its business around West Marine Pro, its wholesale and professional division that generates more than 40 percent of total revenue, and will remodel remaining stores to better serve commercial customers while connecting store inventory to its website and professional app.
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