marine industry professionals
Genmar seeks to continue Ranger promotions
Genmar Holdings is asking a court to allow it to continue its existing promotional programs for Ranger Boats, including payment of certain prepetition promotional claims, such as $500,000 in prize money for the FLW series of fishing tournaments.
Genmar filed for Chapter 11 protection June 1 in U.S. Bankruptcy Court in Minnesota. It is the parent company of Wood Manufacturing Co., the Flippin, Ark.-based company that owns and operates a manufacturing facility for and sells Ranger Boats.
"As of the filing date, Ranger Boats had the highest market share in its segment. The Ranger brand has developed a very loyal following in the recreational and professional fishing circles," according to court documents filed Tuesday. "The debtors view the Ranger brand as a very valuable asset, but one that needs to continue to be promoted in order to preserve and maintain its value."
Among the marketing and promotional programs the company is asking to continue are the issuing of sportswear certificates. As of the filing date, approximately $140,000 of certificates had been given out but remain unredeemed.
In relation to its Ranger Cup program, which provides prizes to participants in numerous Ranger-sponsored fishing tournaments, Genmar says that, as of the bankruptcy filing, there was approximately $95,000 of cash prizes payable to participants, in addition to about $150,000 in outstanding certificates.
In regard to the FLW series of fishing tournaments, Genmar says the prepetition advertising costs are about $30,000, in addition to $500,000 in prize money.
Court documents also mention Ranger's annual dealer conference, scheduled for July 11-12.
"Continuing to promote the Ranger Boat with dealers is critical to retaining market share," according to court documents.
Genmar says it has "sufficient amounts available in their budget with Wells Fargo Bank, National Association, Fifth Third Bank and GE Commercial Distribution Finance to pay the pre-petition promotional costs."
A court hearing is set for July 6 on this matter, though the court may grant the motion without a hearing.
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I can't see how the bankruptcy court would approve this. Genmar is overextended. I can see Jacobs selling off either the Larson or Glastron brand at the very least.
Genmar needs to pay its bills and other obligations, not $500,000 promo money to support their #1 bass boat brand. Let them work without that big promo money for a while the way most boat builders operate. Then let's see how they compete on a more level playing field.
Genmar needs to focus on the # 1 priority - to pay their dealers for prepetition Wty claims and rebates and current and future wty claims.
Many Genmar dealers are now requesting the boat owner to pay up front for wty work and reimburese the customer once the dealer is paid for the work. What is this going to do the the CSI and Brand reputation?
Some dealers are owed more then $200K