Skip to main content

Hydra-Sports purchase aided dealers’ Genmar claims

Half of the money spent to buy Hydra-Sports is being dispersed to dealers who claimed they were owed money after Genmar declared bankruptcy, according to MCBC Hydra Boats president and CEO John Dorton.

Half of Wayzata Investment Partners' $1 million bid to purchase Hydra-Sports was put into escrow to help refund 85 to 90 percent of the $600,000 dealers said they were owed when Genmar filed last June for Chapter 11 bankruptcy, Dorton said.

Wayzata Investment Partners, which also owns MasterCraft, bought the former Genmar brand in December.

When the sale was finalized two weeks ago, representatives of Houlihan Lokey Howard & Zukin Capital Inc., which managed the auction, were to go down the list of claims and distribute the money dealer by dealer.

"We thought that was a fair way to get them back to whole," Dorton said. "People saw the purchase price and thought it was pretty low, but then you break it up and see it did take care of the dealers. We thought that was a pretty nice carve-out."

A few dealers who had made claims before Genmar filed bankruptcy were "a little upset" their claims wouldn't be covered, Dorton said.

Dorton did not say exactly how many prepetition claims dealers had filed.

"There were one or two fairly large totals and a couple smaller ones," Dorton said. "It's none of our business what happened before the Chapter 11 filing, so I may not have seen the complete list, but at least on the Hydra-Sports side, it didn't seem to be a huge number."

All "viable and credit-worthy dealers" indicated they would stay with the brand and have already placed orders, Dorton said.

MCBC Hydra Boats also announced it would pay part of the warranties for new 2008 and 2009 boats in dealer showrooms, even though those model years were built by Genmar-owned Hydra-Sports.

"It will not be full participation like it would be on the boats we've built," Dorton said.

Dorton wouldn't say how much would be covered, but he did say the company is helping offset labor costs incurred for filling warranty work on those boats and is covering most of the cost for parts.

— Reagan Haynes

Related

AdobeStock_306648964

Shoring Up Your Defenses

Marine businesses are just as open to cyberattacks as all kinds of other businesses in nearly every industry

1_Silent_Jet_Render_Main0214

Hinckley Unveils SilentJet

Hinckley Yachts teamed up with Wisconsin-based transmission-maker Twin Disc to create a hybrid electric system called SilentJet that can switch automatically from diesel to electric power, depending on how much throttle you use.

Q&A_Brunswick

Q&A with David Foulkes and Alexandra Cattelan

After divesting its well-known bowling, billiards and fitness brands, Brunswick Corp. emerged as a boating-focused conglomerate, with familiar brands including Sea Ray, Boston Whaler, Bayliner, Protector, Lowe Boats, Mercury Marine, and Freedom Boat Club.

IMG_8361

Finding the Next Buyers

Discover Boating commissioned a research study to fine-tune targeting efforts in marketing.

Insider Access

My hope is to include at least one insider story in every issue of Soundings Trade Only to provide a look at corners of the trade that some folks might not know exist.

AdobeStock_172380409

How to Create a Great Workplace

With insights gleaned from more than 16,000 individual industry employee satisfaction surveys, the Marine Retailers Association of the Americas has gained new understanding and answers of how to drive employee engagement.

AdobeStock_310603612

Two Secrets to Getting Results

Any leader can give reasons for failing to achieve acceptable results. The best leaders overcome inevitable challenges, and some of those leaders make it look easy. Some seem to drive results effortlessly, while others struggle.

1_RIGHWHALES

Industry Pushes Back Against Speed Restrictions

A NOAA Fisheries proposal would restrict boats 35 feet and larger to a 10-knot speed limit along the East Coast to protect right whales from vessel strikes.