Not good for the boat industry!!!

[Deitz Dittrich]

http://wcco.com/business/genmar.files.bankruptcy.2.1027402.html

Genmar makes most of the top bass boats out there.. Ranger, Champion, Stratos.. This is a big hit, and from what I have read and been told. Nobody saw it coming except for upper management.

[nofishfisherman]

Thats usually the way it goes. Keep everyone else in the dark until their last day and then give them a parting kick in the fanny as they leave.

[Sandmannd]

That sucks to hear. The tumbling of the economy is hitting hard everywhere. Luxary items take it the hardest.

[PerchJerker]

From what I have read it sounds like the issue is cash flow and debt covenants. Sounds like they were already working on alternative financing, and that they plan to get the new financing in place and keep operating. Still sucks for everyone involved but for now at least it does not sound like they are closing the doors.

[bassNspear]

ya, before we know it, at the end of the week, everything will be fine. I think they were looking at a situation that they couldnt pass up, and took it for the company, to make it a better strong company, and when its all said and done, and there back up and running, there goign to be a very strong company, if not the strongest!

[hanson]

Nobody saw it coming except for upper management.

Can't say that I saw it coming but really, who's buying boats right now??

I can't even afford to go fishing anymore, let alone buy a new boat, or even repair the one I do have.

[rodmaker]

Not good news. But let's face it, boats are expensive. I'll never be able to afford a new one again.

Times are tough, that's for sure. I'm taking a 7 1/2 % pay cut now. And our youngest Son just started driving!!! More added expense.

Hopefully things will turn around late in the 3rd qtr.

[bassNspear]

see, this is the whole problem, how is the economy ever going to get better, if we dont think positive, and stop talking about all the neg stuff. Everything talk about is neg, nothing postive anymore, and they why we are still in the dumps. Just my .02

[rodmaker]

Didn't intend it to sound so negative.

Things are bad, but there are signs of recovery. Stocks are inching their way back, and things are slowly starting to pick up all around.

[Surreal Deal]

Times are tough, that's for sure. I'm taking a 7 1/2 % pay cut now.

[rodmaker]

You summed up everything well. I'm very fortunate to still have my job. Things will get better , and we are seeing this now somewhat.

I'm one of the more positive persons anyway.

[Chode2235]

My guess, being an armchair financial analyst, is that the depleted their cash and leveraged themselves (probably with the actual companies they were buying) to acquire almost everybody in the marketplace.

They bought ranger, champion, stratus, etc. not too long ago in the hayday of easy finance. A decent strategy if you are confident in long term cash flow stability. Not the case, we see.

But it is not so much that "people aren't buying boats." as it is "We spent way too much buying all of our competitors." This happens a lot more than you think.

[Walleye Guy]

Keep in mind they filed chapter 11 bankruptcy. This means they are reorganizing and not going out of business like a Chapter 7.

We will never know the exact reason behind the bankruptcy because they are privately held. Genmar's creditors are the ones that are going to lose out on this situation. Genmar will be able to shed much of their debt and other liabilities and should come out of this OK.

It was probably the only decision they could make given the economy and balance sheet.

[PerchJerker]

My guess, being an armchair financial analyst, is that the depleted their cash and leveraged themselves (probably with the actual companies they were buying) to acquire almost everybody in the marketplace.

They bought ranger, champion, stratus, etc. not too long ago in the hayday of easy finance. A decent strategy if you are confident in long term cash flow stability. Not the case, we see.

But it is not so much that "people aren't buying boats." as it is "We spent way too much buying all of our competitors." This happens a lot more than you think.

The reports or articles that I read showed that they still have positve net current assets and working capital, but haven't been generating positive cash flow and were in default on some debt covenants. Not too hard to understand because they said sales were down 30% last year and another 20% this year (or something like that) -- can't be much cash coming in with those kinds of sales declines. It also said they had already been working on alternative financing but didn't have it in place yet.

[bassNspear]

There moving back in the right direction. The company is moving back in the right direction, and when its all said and done, there going to be strong agian, and making alot of boats