Genmar Holdings, the country's second-largest boatbuilder, has filed for Chapter 11 reorganization protection in U.S. bankruptcy court.
"If someone would have said to me as recently as even one month ago that Genmar would someday be filing for Chapter 11, I would have said it was not even a remote possibility," Genmar chairman and CEO Irwin Jacobs said in a statement.
"I've always looked for ways to enhance Genmar's balance sheet and felt that even though business conditions were incredibly difficult, there were alternatives available," he added. "Unfortunately, I didn't have the necessary time to complete any of the alternative financing acceptable to the banks."
Jacobs said he plans on reorganizing and coming out of Chapter 11 "as a stronger and better company." The company will submit its overall reorganization plans for approval to the court as soon as possible.
Genmar has more than $100 million in current assets, as well as additional fixed assets and intangible assets it believes will allow the company to come through this, Jacobs said.
Minneapolis-based Genmar Holdings has approximately 1,500 employees in five manufacturing centers. The company builds 15 boat brands, including the recently introduced FinCraft, which are sold worldwide through its approximately 1,100 dealers.
Look for more on Monday's Chapter 11 filing in today's daily e-newsletter from Trade Only.advertisement
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To all those who cannot afford to consult an attorney, here is all that is needed to protect yourself in the Genmar bankruptcy, i.e. warranty, future warranty, defects, fraud, etc.
owners, previous owners, any persons that attempted to purchase the following products:
RANGER, CHAMPION, HYDRA-SPORT, STRATOS, CARVER, FOUR WINNS, WELLCRAFT, WINDSOR, MARQUIS, GLASTRON, LARSON, TRIMUPH, FOUR WINNS,
HOW TO FILE AGAINST GENMAR CORPORATTION OR ANY OF ITS SUB COMPAINES BANKRUPTCY’S
TO ALL PERSONS WHO HAVE BEEN CHEATED, LIED TOO OR STOLEN FROM BY GENMAR/RANGER BOATS OR ANY OF GENMARS COMPANIES UNDER BANKRUPTCY. THIS INCLUDES ANY INDIVIDUAL, CUSTOMER, GENMAR DEALER ARE REPERSENATIVE, THAT FEELS CHEATED ARE DEFRAUDED BY ANY MEANS, INCLUDING ALL CRIMINAL OR CIVIL MATTERS, ALL PURCHASES, DEALER CONTRACTS, WARRANTY ISSUES, REPAIR ISSUES, ETC. PLEASE BE SURE TO FOLLOW THRU WITH THESE. EACH ONE TAKES LESS THAN 3-4 MINUTES TO FILL OUT. ITS TIME ALL THE CUSTOMERS CONTROLED THE OUTCOME. THANKS.
Below are the links for forms that can be used to file a claim against Genmar, Ranger, and any other Genmar companies.
http://www.uscourts.gov/bkforms/bankruptcy_forms.html
If you are owed money from any Genmar company for ANY REASON, you may file a claim in the Genmar Bankruptcy, or the Bankruptcy of that particular company. ( case numbers below)
http://www.uscourts.gov/rules/BK_Forms_Pending_2008/B_010_1208v4.pdf
If you have a cause that is not specific money related, and involves any corrupt or unscrupulous action or actions by a Genmar Company, Rep, Dealer, on a sale , warranty, etc, you can file a adversary proceeding, which starts a separate action from the bankruptcy case in the same court.
INSTRUCTIONS
http://www.uscourts.gov/rules/BK_Forms_09_Official/Form_16D_Caption_Adversary_Proc_INSTRUCTIONS_0509.pdf
FORM
http://www.uscourts.gov/bkforms/official/b16d.pdf
ALL CLAIMS FORMAS AND ADVERSARY PROCEEDING FORMS MUST BE MAILED TO THE BANKRUPTCY COURT CLERK BY 11/18/2009
Mail completed forms to:
Bankruptcy clerks office
301 U.S. Courthouse
300 South Fourth Street
Minneapolis MN 55415
U.S. Trustee
Sarah J Wencil
300 South Fourth Street
Suite 1015
Minneapolis, Mn 55415
Debtor Attorney
James Baillie
200 South Sixth Street
Suite 4000
Minneapolis MN 55415
Companies and associated case numbers::
Genmar Holdings,09-43537 // Carver Industries 09-43538 // Carver Italia 09-33773 // Carver Yachts 09-33774 // Genmar Florida 09-43539 // Genmar Industries 09-43540 // Genmar IP 09-43541 // Genmar Manufacturing Kansas 09-43542 // Genmar Michigan 09-43543 // Genmar Minnesota 09-33775 // Genmar Tennessee 09-43544 // Genmar Transportation 09-43545 // Genmar Yacht Group 09-43546 // Marine Media 09-43547 // Minstar 09-43548 // Trimuph Boats 09-43550 // VEC Leasing 09-43552 // VEC management 09-43553 // VEC Technology 09-43554 // Windsor Craft Yachts 09-43555 // Ranger Boats; Wood Manufacturing Company, Inc. 09-43556
Not too suprised they have to file with boating going the way and I also attacehd a response I received from their "customer service dept". If they are taking care of all their customers this way they won't be around long.
Dear Four Winns
I am sorry also as I plan on selling this boat and buying a new one. I have been loyal to Four Winns since I started boating and this is our third Four Winns no other boat was ever considered. I know GM did this type of great service in the 80's and look where it put them! Your answer of basically saying too bad for me is totally unbelievable to me.
I hope you are all able to keep your jobs as you treat customers this way. Good luck!
I will tell people about this and will also post on the internet for the buyer to beware.
-----Original Message-----
From: Four Winns Information Services [mailto: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ]
Sent: Friday, June 26, 2009 8:55 AM
Subject: Re: General Contact from Four Winns Website
Hello Mr. ,
We are sorry to learn of your dillema, however the only other option is to replace the entire window with another version which would require extensive modification to the cutout.
Sorry for this inconvenience.
Regards,
-Four Winns
Although this is a bad day for the boating industry i feel no compasion
for Jacobs. I was also a large Wellcraft dealer that was owed thousands
of dollars in warranty and never got paid. I was also forced out of business
by having to keep so much inventory on hand and most of that had problems
from the factory as well. Jacobs never thought of his dealers unless they
were the few mega dealers that he touted. He will come out and all the
suppliers and little guys will take the hit for him. It is a shame the industry
is in this bad way.
I don't feel a bit sorry for this egotistical creep, but its too bad for all the employees and suppliers. When I was a Lund dealer this guy did absolutely nothing to help me when business went sower; only went and gave the dealership to a competitor down the road, and then some more competitors when the succeeding dealers dropped of the map.
When I asked him about warranty isses at MRAA, he sternly put his hand on my shoulder in a dramatic way and said "Son, let me tell you..." At 40 years old I did not appreciate his banter, reared back and asked him "Who the hell do you think you're talking to??" End of conversation.
After being in bankruptcy and experiencing it first-hand, anything can happen in and out of the courtroom. I hope he goes in there and puts on his cocky act. No federal judge or trustee could care less about him.
If any dealer is contimplating bankruptcy, my advice is don't do it for many reasons. Work it out in another fashion as the lawers will deceive and drain you of your last dime
Say what you want about Irwin but there is no way this was by design. Have a look around. Genmar must be affected just as the entire industry has been by this recession.
It's happening to everyone, the difference is, Irwin has the skill and resources to turn it around and come out #1 not #2 as they were heading in to bankruptcy.
My hopes, prayers and support are their for the staff, suppliers and dealers.
Go get 'em Irwin!
I am Happy for Mr. Jacobs. What goes around comes around. Unfortunately he will come out of it better. As another post said he will stick all his vendors with his debt and force them out of business. Vendors that he already put the screws to to be a vendor.
Maybe all the companies he bought solely to keep them at bay and to extinguish his competition are a factor. If he would of just left them to prosper and supported them to help expand their business he would have had a better bottomline. He srewed many loyal customers, dealers and employees over the past few years. I for one could only hope that he looses but he wont. All I know is that since I have left the Genmar family and the brand, the brand is nearly extinct. which was one of the only territories meeting or exceeding sales goals.
We could only hope he goes away, good riddens!
Something we all have to remember, in a chapter 11, the filer now has the opportunity to continue business while they negotiate their debt with their hundreds of suppliers who have been hit just as hard by the collapse of the boating industry.
Genmar will probably negotiate a 10-20 cents on the dollar settlement with many of their suppliers, throwing the burden on all of the suppliers to absord the hit that Genmar created.
Many of these suppliers will now either fail or have to declare bankruptcy simply to survive. The ripple effect continues on down the ladder, while Genmar, now free of a major part of its' debt comes out smelling like a rose!
Don't telll me that this hasn't been planned for a long time!
I've had the pleasure of dealing one-on-one with Irwin Jacobs and found him to be a heartless egomaniac, with absolutely no consideration for his dealers. I hope he develops an appetite for crow.
To All Concerned,
Please note that the email that was supposedly sent from Steve Wacker is a FRAUD. I have been a loyal dealer of Genmars for years and I have the utmost respect for them and hold them in the highest regard.
We will do our best to find out who wrote this email message and hold them responsible for this.
Steve Wacker, Pres.
Thunder Marine
For everyone taking this opportunity to attack Jacobs, remember this. Jacobs is the head of a company that has provided jobs for thousands of employees, suppliers employees, and dealers employees for 25+ years. He has expanded his business at times in which it might not have been in his best interest, but kept people in jobs. Let us not forget that over the years he has picked up companies/employees at the brink of bankruptcy and gave them jobs.
Say what you will, but for me this is a sad day.
Irwin Jabobs plays the industry media very well - you would be a lapdog too if you were worried about Genmar advertising revenue.
I see some former dealers ain't buying into it, judging from the comments here. The big question is -- will the banks and creditors? Comments from Jacobs like "Unfortunately, I didn't have the necessary time to complete any of the alternative financing acceptable to the banks" just reek of (BS) to me."
I guess the white knights aren't returning his calls.
The news about Gen Mar is not surprising. We feel for
the people and their families that will lose their jobs and possibly their
homes.
Gen Mar will come through this on the backs of taxpayers and consumers. As for Mr. Jacobs, he can talk his was out of anything
and sound convincing doing it.
Infectious greed in our industry and many others is a new way of life in the U.S.
Our beloved boating industry is heading towards a rich mans sport as it was in the first half of the 20th century. Few middle class people will be able to afford this luxury.
Will G.
33 year Marine industry veteran
Given Irwin's lofty comments in his recent industry interview he is either completely out of touch with his business or a complete blowhard. Either way he should be the first one to go in a Chapter 11 reorg, a la Rick Wagoner at GM.
Mr. Jacobs obviously evokes strong emotional responses from a number of people. From the looks so far, they are not positive. It is my guess that most people are not disappointed in seeing Jacobs' high regard for his own opinions getting a few dents and scratches.
I suspect he will choreograph the bankruptcy in the manner he has always tried to run business - a mix of media appearances saying how wonderful things will be while being completely ruthless in making cuts and shedding costs and employees.
Some entity will likely emerge from bankruptcy and likely with Jacobs as the leader. Mr. Jacobs projects so much confidence that he seemingly always is able gain a business following. So while he enjoys so little personal adoration, don't plan on dancing on his company crypt just yet.
You only need to look at Fin Crafts dealer requirements in order to sign up. One must order to truck loads of boats and have them delivered prior to Dec. 31. Yes sir, take a new, unproven brand in poor economic times and load the dealer. Just another reason Genmar and other companies who do business like this are now out of business or in serious trouble. Too bad to many dealers had to fall by the wayside first because of the short sighted manufacturers.
CaptainKman
Selling boats to dealers in one thing, selling boats to customers is another. Opening dealers, endorsing them so they can buy more boats will get you going for so long. Now that all those boats are on their way back to the manufacturer they'll find a way not to buy them back. Bankruptcy is the way......
Any thoughts on what this might do to GE? Are they at or near their repurchase obligation? Would GE be responsible for any product outside this obligation?
The multi-part interview with Irwin Jacobs appeared in another industry magazine, not Soundings or Soundings Trade Only.
- Beth Rosenberg
I think back to just a month or two ago regarding the 3 or 4 part interview Mr. Jacobs "Pompous Emperor" gave with Soundings or Marine Industry Magazine. In it, he was glowing with rosy predictions and corporate doublespeak. In hindsight it looks like Nero was fiddling while Rome was burning.
The bad decisions were marketing decisions that attempted to aid their dealer network. They were ineffective, and perhaps costly, yet they were better than sitting on your hands and doing nothing to move the industry forward.
Ominous day for the boating industry because Genmar has very viable and competitive products that were not overly priced. I wish my former colleagues at Genmar and HMC well.