🚤New Chapter 11 Bankruptcy Filing - West Marine, Inc.🚤
Marine-focused retailer arrives at Delaware port with an RSA
On May 17, 2026, West Marine, Inc. and seven affiliates (collectively, the “debtors”) filed prearranged chapter 11 bankruptcy cases in the District of Delaware (Judge Owens). The debtors are a retailer for boating supplies, fishing gear, marine equipment, etc, dating all the way back ‘68 when, per CEO Paulee Day, “… Randy Repass, a man who loved boating—but loved taking care of people even more— …”
“… took his father’s East Coast ropes business West …”
And while “[t]he early days of [the business] faced choppy waters …”
… Mr. Repass persisted, found success, and the debtors grew. At their height, they had ~287 locations, fueled by add-on acquisitions and the opening of ever-larger stores, including a — holy hell — 50,000 ft² Fort Lauderdale “superstore.”
Anyway, let’s jump forward to 2020. Predictable sh*t unfolded. Back to Mr. Day:
“… during the COVID-19 pandemic, the Company accelerated its growth strategy to meet increased demand driven by a shift toward outdoor recreation. The Company expanded its product assortment to include lifestyle and discretionary products that supported life on the water, including apparel, footwear, accessories, and water toys in a larger abundance than ever before. This expanded assortment marked a divergence from the core marine focus on which the Company was founded.”
But uh-oh:
“Soon after this expansion, however, consumer discretionary spending contracted. The Company experienced supply chain disruptions, and frequent, severe weather during peak boating seasons dampened demand, leaving the Company with aging inventory across a wide footprint.”
To address its then-existing capital structure, in March ‘23, the debtors executed a recapitalization with 100% of their then-existing lenders, which brought in ~$150mm in new money.
That bought the debtors, oh, about six months or so.
By September ‘23, they had burnt through the new cash, which necessitated another recap, again with 100% lender support, and brought in another ~$125mm.*
Sure as sh*t, the debtors burned through that too. So there were more and more borrowings via incremental ABL and term loan amendments in the nine-ish months leading up to the filing. As of the petition date, the debt stack looks like 👇:
Which, obviously, the debtors intend to restructure in chapter 11.
No, not by liquidating the retailer.
The debtors have a going-concern restructuring support agreement (the “RSA”). A well-liked one; the RSA — as well as the related chapter 11 plan and disclosure statement (the “DS”) — has the support of 100% of the FILO lenders, 96.2% of the term loan lenders, and 93.9% of equity interests and provides:
📍Payment of Claims. The equitization of 100% of the term loans in exchange for 100% of the reorg equity, subject to dilution by a MIP, and the payment in full of the ABL claims and the FILO claims or their conversion into not-quite-agreed exit facilities. If GUCs play along and vote in favor of the plan, they’ll also be treated to their pro rata split of $250k.**
📍New Money. Access to a committed, 🥜-sized $7.5mm post-emergence exit facility, which can be upsized another $2.5mm and has built-in capacity for up to another $15mm post-emergence.
📍Cash Collateral Usage. The consent of the debtors’ prepetition ABL agent and lender, Eclipse Business Capital LLC (“Eclipse”) for the usage of cash collateral during the cases, which, per the budget, is expected to be paid down ~$68.7mm by mid-August. That’s right, ladies and gentlemen, there’s no DIP here.
📍Marketing Process. Make no mistake: equitization is the default path, but the debtors, with the assistance of Triple P Securities, LLC d/b/a Portage Point (“Portage Point”), will try their hand at a marketing process and, if it bears fruit, toggle to a sale.
📍Timeline. “Try their hand” is generous. If Portage Point sources a bidder who diligences this thing we’ll be shocked: bids for any sales will be due by June 26, 2026, and the debtors will need to obtain either a confirmation order or a sale order by August 5, 2026, with the transaction closing no later than August 20. During that period, Hilco Merchant Resources, LLC and Hilco Real Estate, LLC (collectively, “Hilco”) will strong-arm landlords into lease concessions*** and liquidate any stores that don’t make it.
The court held the first-day hearing on May 19, 2026, which was, you know, supes uneventful. It clocked it at ~1.25 hours, during which Judge Owens granted all requested relief and scheduled the second-day and conditional DS approval hearings for June 11, 2026 at 2pm ET.
The debtors are represented by Kirkland & Ellis LLP (Joshua Sussberg, Matthew Fagen, Brian Nakhaimousa, Trevor Eck, Michael Esser) and Young Conaway Stargatt & Taylor, LLP (Michael Nestor, Kara Hammond Coyle, Shella Borovinskaya, Kristin Cardoza) as legal counsel, FTI Consulting, Inc. ($FCN) (Amir Agam) as financial advisor, Triple P Securities, LLC d/b/a Portage Point (Tosh Dhanala, Stephen Golmont, Steve Bremer, Ethan Retcher, Christopher Lukens) as investment banker, and Hilco (Eric Kaup) as real estate advisor and inventory liquidator. In turn, Hilco is represented by Womble Bond Dickinson (US) LLP (Marcy McLaughlin Smith). Matthew Kahn and Hugh Charvat are the debtors’ independent directors. An ad hoc group of consenting stakeholders is represented by Milbank LLP (Matthew Brod, Benjamin Schak), Otterbourg P.C. (Antonio Aguilera, Daniel Fiorillo, Nicholas Palazzolo, Matt Stockl) and Richards, Layton & Finger, P.A. (Michael Merchant, Brendan Schlauch, Zachary Javorsky) as legal counsel. Eclipse, as prepetition ABL agent and lender, is represented by Reimer & Braunstein LLP (Steven Fox, Janine Figueiredo) and Ashby & Geddes, P.A. (Gregory Taylor) as legal counsel and AlixPartners LLP (Kent Percy, Rodi Blokh, James Shen) as financial advisor. Wilmington Savings Fund Society, FSB, as prepetition term loan agent, is represented by ArentFox Schiff LLP (Jeffrey Gleit, Matthew Bentley, Justin Kesselman) and Morris James LLP (Eric Monzo, Jason Levin) as legal counsel.
*All-in, the two back-to-back LMEs equitized ~$660mm of then-existing debt, which led to a 36-page-long list of equity holders. While we won’t list them all, holders include AEA, Barclays, Crescent Capital, Evolution, Golden Tree, ICG, Oaktree, Onex Credit Partners, Octagon Investment Partners, Octagon Investment Partners, PIMCO, Rockford Tower, Silver Rock, Sound Point, SVP, and MJX.
**The debtors don’t seem particularly beholden to this figure. At the May 19, 2026 first-day hearing, K&E told the court that “… that’s kind of an opening negotiation with a creditors’ committee that we’re sure will be appointed.”
***As of the petition date, the debtors have ~200 leases that carry a collective ~$50mm in annual obligations.
Company Professionals:
Legal: Kirkland & Ellis LLP (Joshua Sussberg, Matthew Fagen, Brian Nakhaimousa, Trevor Eck, Michael Esser) and Young Conaway Stargatt & Taylor, LLP (Michael Nestor, Kara Hammond Coyle, Shella Borovinskaya, Kristin Cardoza)
Financial Advisor: FTI Consulting, Inc. ($FCN) (Amir Agam, Thinh Banh)
Investment Banker: Triple P Securities, LLC d/b/a Portage Point (Tosh Dhanala, Stephen Golmont, Steve Bremer, Ethan Retcher, Christopher Lukens)
Real Estate Advisor and Inventory Liquidator: Hilco Merchant Resources, LLC and Hilco Real Estate, LLC (Eric Kaup)
Legal: Womble Bond Dickinson (US) LLP (Marcy McLaughlin Smith)
Independent Directors: Matthew Kahn and Hugh Charvat
Claims Agent: Verita (Click here for free docket access)
Other Parties in Interest:
Ad Hoc Group of Consenting Stakeholders
Legal: Milbank LLP (Matthew Brod, Benjamin Schak), Otterbourg P.C. (Antonio Aguilera, Daniel Fiorillo, Nicholas Palazzolo, Matt Stockl) and Richards, Layton & Finger, P.A. (Michael Merchant, Brendan Schlauch, Zachary Javorsky)
Prepetition ABL Agent: Eclipse Business Capital LLC
Legal: Reimer & Braunstein LLP (Steven Fox, Janine Figueiredo) and Ashby & Geddes, P.A. (Gregory Taylor)
Financial Advisor: AlixPartners LLP (Kent Percy, Rodi Blokh, James Shen)
Prepetition Term Loan Agent: Wilmington Savings Fund Society, FSB
Legal: ArentFox Schiff LLP (Jeffrey Gleit, Matthew Bentley, Justin Kesselman) and Morris James LLP (Eric Monzo, Jason Levin)