West Marine has emerged from Chapter 11 bankruptcy proceedings as part of a restructuring that reduced its debt by more than $265 million. Unsecured creditors, including vendors, are expected to recover only a minimal amount on their claims. 

The boats and marine product retailer said it obtained an additional $10 million in exit financing to support its emergence. 

West Marine filed for bankruptcy protection on May 17, citing years of mounting pressure from high lease costs that executives said drained cash and hindered recovery efforts. Other factors in the bankruptcy included inflation and economic uncertainty, which led to a pullback in discretionary spending, as well as softer post-pandemic demand for boating. Also cited in court papers were elevated inventory levels due to inefficiencies at the company’s largest distribution center and overbuying connected to the pandemic-era demand surge, as well as the fallout from tariffs and weather disruptions that shortened key boating seasons in 2024 and 2025. 

The company said it will continue doing business through approximately 100 retail locations, its online platform, and the West Marine Pro business. West Marine has closed or is in the process of closing 91 stores since it filed for bankruptcy in May 2026. 

“Today marks an important milestone for West Marine and the beginning of an exciting new chapter for our business,” said Paulee Day, CEO of West Marine, since November 2025. “Throughout this process, we remained focused on what matters most: serving customers, supporting the boating community, and preserving the legacy of a company that has been helping people enjoy time on the water for generations. Thanks to the support of our customers, vendors, partners, and financial stakeholders, and the unwavering dedication of our Crew Members, we are emerging as a stronger company positioned to build on momentum and serve the boating community for years to come.” 

Under the reorganization plan, existing owners L Catterton and Oaktree are wiped out as part of a settlement reached in July after an auction process to sell the company drew no qualified bids. 

Secured lenders were paid in full, while term loan lenders, who were owed $251.2 million at the time of the filing, converted their debt into all the company’s equity. The payout to term loan lenders is subject to dilution under the retailer’s management incentive program. In an affidavit, Amir Agam, interim VP of West Marine, and a senior managing director at FTI Consulting, Inc., estimated term loan lenders will receive a recovery between 42 percent and 59 percent of their claims. 

Unsecured claim holders will receive some recovery as part of a GUC (General Unsecured Creditors) Trust, a recovery fund seeded with $2 million in cash (paid in two equal installments), which was negotiated through a settlement with the Official Committee of Unsecured Creditors (OCUC). 

The trust can further receive up to $650,000 in additional proceeds derived from 33 percent of the net recoveries of four specific pre-bankruptcy litigation and settlement claims. It is also subject to deductions if the OCUC’s professional legal and advisory fees exceed $2.85 million. 

The recovery is expected to be small given that the total amount owed to unsecured creditors at the time of the filing was listed between $99.3 million and $109.2 million. Those holding unsecured claims included major vendors like Garmin International ($8.57 million), Virtual Supply ($5.8 million), and Sierra International ($4.7 million).  Editor’s Note: The Top 30 unsecured creditors list is here. 

However, West Marine’s initial restructuring plan had only offered a “death-trap” provision in which unsecured creditors would share a meager $250,000 pool (representing a 0.2 percent to 0.3 percent recovery rate on approximately $100 million in total unsecured debt). The OCUC challenged the company’s internal pre-petition transactions to push for a better payout. 

Vendors have been paid in full for goods and services provided after the initial bankruptcy filing. 

West Marine is advised by Kirkland & Ellis LLP and Young Conaway Stargatt & Taylor, LLP as co-counsel, Triple P Securities, LLC as investment banker, FTI Consulting, Inc. as restructuring and communications advisor, and Hilco Real Estate, LLC as real estate advisor. 

Image courtesy West Marine