marine industry professionals
Judge allows Genmar to work with bidder
Genmar has identified a potential stalking horse as "the party that has submitted the best offer to date from the standpoint of cash consideration and probability of consummation." It does not, however, identify that party, in order to "preserve the integrity of the sale process."
Genmar chairman Irwin Jacobs has confirmed he is bidding for the company and has said he plans to make the highest offer. No other potential bidders have been publicly identified.
Jacobs said this morning he could not comment further on his bid.
"My interest was in the company intact, for the most part, that's all I can tell you," he added. "I can't give you anything more than what's out there right now."
Genmar announced last week it was pursuing a sales process rather than reorganization as a means to exit from Chapter 11 bankruptcy.
"I tried to do the reorganization and couldn't get the cooperation of everybody necessary with which to do it," Jacobs previously told Soundings Trade Only. "I was going down that path and, frankly, had what I thought was, in place, a transaction to do it. But there were people who weren't cooperating with it, so I had to go in a different direction."
In an unrelated motion, the judge this week also extended the period in which Genmar has the exclusive right to file plans for reorganization through Jan. 31, 2010, and the exclusive right to obtain acceptances of such plans was extended through April 1, 2010.
The judge also authorized an amendment of the debtor-in-possession financing with senior lenders.
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Tom,
Most dealers, competitiors, vendors and finance institutions don't blame Irwin. Read the comments on several blogs and you'll see he's not the guy that did everything. He filed chapter 11 to elininate debt. However, he has in the past, and now is again manipulating the system, and business relationships to manuver a position eliminating debt, reducing operations, and trying to come full circle with new partners and no debt. It is his history and resume in business over many years.
He didn't cause anything...... he's using the situation to his advantage unless others take strong actions to stop the bleeding. The people in his plant operations have had to suffer and they want to blame him because he hasn't paid the very people that helped him make lots of money. The vendors and banks blame him because he didn't negociate the debt like others have in the industry. These are direct actions by Irwin, not the industry or circustances.
Wow! some of you should get a grip and stop whining. Irwin Jacobs has no more control over the economy than you have. This down turn has hurt the whole industry, not just Genmar. I know this situation sucks but stop blaming someone who had no possible way to control the out come of our economy.
If you must blame someone, how about your government theres a good place to start. Did you hear about the credit crisis? Well, I work in this industry as well and I also lost my job, but blaming the owners of the company is not the answer.
Consumer confidence is not controled by an individual, its control by economic circumstance. And I for one know that the Genmar Corperation and its management did not create this situation!
This is sad story... I feel sorry for all employees who work there and I hope somebody else buy this company and make it better then now.
Jim Desai
i have been in the boat business since 1977. im 46 now. ive seen more than one recession and dozens of "big" players go out of business. this situation was bound to happen right from the beginning. everything is indeed cyclical. these guys act as if there is an endless uninterrupted supply of boat buyers and funds to buy luxury items, which boats are ! i wouldnt take a new boat line if it was free ! the contracts alone are enough of a deterent let alone the hassels with getting paid for waranty work and having inventory rammed down your throat. let someone else sell them and ill stick to service and storage and used boat brokerage. who needs the stress of dealing with the irwins of the world.
and another thing, the dealers who seemingly have no problem with what irwin has done and is planning to do are just as greedy and self minded and narcisistic as he is.
A lot of hard feelings towards Mr. Jacobs.
I don't know how Mr. Jacobs sleeps at night ?.He laid off hard working people. He took 10% of our pay away from us . Shorten our work week. Quit giving us our cost of living raise. Our yearly Chirstmas bonuses . And don't forget the employees service awards. The ones who have been loyal and committed to doing their best work for a lot of years. Last year they got half of what was due them , this year no one is getting anything ,nothing , zip. Moral is at its all time low. I have never seen people so down and out , stressed beyond belief about a job .
Now employees have a double and triple work loads. They leave after a days work more sore and more then just tired. Some were so fed up and stressed out with all the bs that they quit , just to find work that they know will be less stressful and know that it will be there the next day. Security!!!!
We have a hard time now making ends meet , where as before we had enough earnings to have the means to give our families what is needed. A struggle is what we have now.
We looked forward to going to work , knowing that it does make a great difference and we mattered.
How dare he ! Wanting to buy back what he ruined ? It scares us to death to think what more could happen to us. If he has the means to buy back the company then why did we have to suffer in the first place? Why did he not just do what was right by his employees,creditors etc..?
Has he ever worked really worked a hard day in his life? Or was he born with a sliver spoon in his mouth? If he has, maybe he forgot what it was like? We work hard for what we have . And now Mr. Jacobs made that even harder.
If employees were allowed to vote on who should get the chance to buy this company. I believe he would lose by a landslide.
What is great is that the possibablity of someone else buying the company , has employees excitied again. With hope that we may have a brighter furture ahead of us. Let us pray that this will be the outcome.
I am owner and General Manager of a new (read small) manufacturer named Miramar Marine in Austin, TX. Our first production model is a 23' center console offshore boat, not a bay boat. I welcome any and all advice from dealers and industry professionals that can provide guidance as to how a small manufacturer in my position successfully establishes itself with quality dealers who want to represent quality products. It is a shame what has happened to a lot of good people, and what will continue to happen with acceptance of this type of behavior.
Kevin Brown
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the sad part is that Irwin will get away with this, and little to no debt for the future in the process, and many good dealers will get much less. The little guy does not have the clout or the $$$ to fight it. If nothing else he has all but delayed things till April 2010... By then he may have less dealers to payout due to the attrition of less stable dealers.
Look for the small builders of quality boats and have dinner with them, it has to be a better long term investment than any deal with Irwin and the courts....
The news that Genmar's bankruptcy is now out to April 2010 signals more pain for already troubled winter boat shows. Genmar's boat show footprint is quite large in most shows. If their brands are not present, many shows will be pushed to the brink. This is not good for the industry. We are all in need of good winter shows to help launch the 2010 selling season.
Let me address the situation as a Genmar dealer. We are operating on a "business as usual" basis. Our sales have been fair in spite of a difficult economic environment.We also have had a very good year in our service department. That includes our warranty work. We have met and satisfied all our customers warranty needs.As far as any reimbursements from Genmar to us as a dealer we have been paid for all warranty,co-op and rebate monies that were due us..It may have taken us a little longer to collect but all monies had to be released from the courts as is required in this process.I am looking forward to the resolution of the chaper 11 bankruptcy. I also have no problem with a new owner or if Irwin Jacobs buys the company back.I think most of your better dealers throuhout the network will do just fine if they continue to operate at a superior level.
I recently switched from Genmar to an independant boat builder that is financially sound and I have to say it relieves alot of stress, I can get parts next day aired to me, consumers are not hesitant, all banks will do loans with me and I get alot better customer service. Irwin was just getting too shaddy for me.
I can tell you I will feel alot more confident at my boat shows this winter. Our customers trust in us a dealers and will buy what we offer I know some of my repeat buyers have told me my move was a good move. Irwin good luck in your next venture I am sure you will make a ton of money in your next industry.
Dealers should take notice of the small to medium size boat companies that continue to build boats during these difficult times. Pick ones that show signs that they will come out on the other side of this. See if they have a good record of paying warranty claims, even if they are slower in doing so now. Dealers should buy from these companies where they will be a more significant partner whose owners and long time representatives care about their dealers. There are plenty of these companies to choose from. Go to the MRAA show this month and find one.
Hundreds of dealers are owed substantial amounts of money from Genmar from rebates, warranty, co-op, etc....and it is probably the faint hope of collection....that is keeping many of these dealers hanging on. Can't believe that any of them would want to continue with some of these lines, as it could be years before the damage is repaired...and if sold....no guarantee's of future success.
If Irwin buys some of the companies... do the banks, vendors, and dealers forgive the millions of dollars they are owed....and go back to business as usual with him???....I would hope not.