Bankrupt Canadian builder looks for buyer

Author:
Publish date:

Rossiter Boats, doing business as Windward Holdings Inc, was placed into bankruptcy on June 5. According to documents from its trustee, Grant Thornton Ltd, the first meeting of creditors will take place on June 25 at its offices in Toronto, Ontario.

Rossiter Boats, which manufactures rowboats and powerboats from 8 to 23 feet at its facility in Markdale, Ontario, has 26 dealers in Canada and the U.S. Scott Hanson, former Rossiter president, told Trade Only Today that the builder had about $1.9 million in orders when it stopped production. He said delivery delays of large-hp outboard engines, along with recent Canada/US trade uncertainties, prompted Windward Holdings’ move towards bankruptcy.

The engine delays put “tremendous pressure” on cash flow, says Hanson, tying up cash in costs of goods as its boats sat in the facility, waiting for engines. “Our primary engine suppliers have been doing everything that they can,” Hanson said. “But they’re dealing with unprecedented demand levels. They told us in March there would be limited supply, but that got pushed out to December.”

Hanson said that even “secondary” engine builders attached to dealers could not supply enough outboards. “I think the situation is affecting everyone, but it’s particularly hard on the small- and medium-sized boat builders,” he said.

Because of the engine delivery issues, compounded by uncertainties by recent tariffs in the U.S. and Canada, Windward decided to shut down the company. Grant Thornton will seek a new buyer over the coming weeks for a possible restructuring.

Hanson said that Rossiter’s strong order book, with assets exceeding liabilities, should help find a buyer. “We’re not an upside-down company,” he says. “We’ve grown by double digits, year over year, for many years.” All but one of its 26 dealers have indicated their support for the builder, said Hanson, and the company has received enquiries from potential buyers in Canada and the U.S. “I’ve been meeting over the last few days with potential investors in the U.S.,” he adds. “I’m confident we can find a buyer quickly and hope we can resume production by July.”

Creditor information is available at Grant Thornton. 

Related

Besenzoni - for over 50 years ambassador of made in Italy in the world - designs and produces accessories for pleasure and commercial boating characterized by simple and functional design

Besenzoni constantly assists its customers in 90 countries with 187 representative points and a direct assistance network consisting of 164 operating units around the world coordinated by the headquarters.

Sea Tow Saves Cold-Stunned Turtles

Its Corpus Christi outfit is rescuing turtles that were affected by the deep freeze in Texas.

Southern Marinas Sells Portfolio

The group had made six acquisitions last year and had a total of 12 properties under its umbrella.

2020 Neptune Award Winners Named

The annual marketing awards drew 129 entries in 20 categories.

‘A Great Start to 2021’

An onslaught of new and returning customers kept dealers busy in what is typically a slower time of year.

Nautique Names VP of Sales

Rick Skinner joins the Correct Craft subsidiary after 30-plus years with water-sports equipment manufacturer HO Sports.

MarineMax Expands Territories for Cruisers, MJM

The dealership will offer the brands at several of its locations, including Boston, Baltimore, Jacksonville and Charleston.