 Boaters World
Boater's World parent company files for Chapter 11 bankruptcy protection
By IBI Magazine
The parent company of Boater's World filed for Chapter 11 bankruptcy protection this morning. According to Reuters, Ritz Camera Centers said the recession hurt its camera business as well as prolonged the downturn in its Boater's World business.
Ritz launched Boater's World in 1987, and has grown the division to 137 retail stores. Among US marine accessories retailers, it is second in size only to West Marine.
In an affidavit in the court filing, chief restructuring officer Marc Weinsweig said the company's lenders ordered it in January to boost reserves, thereby reducing available credit. Weinsweig said this happened after the recession caused Ritz's 2008 holiday sales to be "materially lower" than a year earlier. A drop in consumer spending and slumping sales at Boater's World also prompted the bankruptcy filing. The rise in gas prices and other factors led to a "sharp" drop in sales at Boater's World's stores, Weinsweig wrote in the filing.
The company reported between US$100m and US$500m of both assets and liabilities. It also reported nearly US$1bn in revenues in the year ended November 30, 2008. Ritz said it will seek court permission to obtain US$85m of financing to keep operating while it restructures.
Officials at Ritz did not return phone calls by presstime.
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