Boater's World Out of Business

[JimMcGee]

From International Boat Industry (IBI) Magazine today


Boater's World to be liquidated
By IBI Magazine
The assets of 129 Boater's World stores will be liquidated by a company that submitted the largest bid for the retail chain. According to its attorney, Boater's World parent Ritz Camera Centers should collect at least US$40m from the sale.
A joint venture between Gordon Brothers Group LLC and Hilco Merchant Resources was given permission by US Bankruptcy Judge Mary Walrath to liquidate the chain's assets. They were the highest bidders from Tuesday's auction. Ritz attorney Irving Walker told Walrath in a hearing yesterday that the sale was in "the best interest" of the creditors. In its bid, Gordon Brothers and Hilco guaranteed that Ritz would collect at least 90 per cent of the value of the goods sold during the liquidation. Hilco spokesman Rick Kaye told IBI that the liquidation sale would start over the weekend. "There is a predicted time that the sale runs its course," Kaye said. "Very rarely does it go longer than six to eight weeks." According to a Hilco statement, there is US$100m worth of inventory being sold.

[brak]

not a big surprise. they always had odd selection and exorbitant prices (even compared to WM).

Might be some good deals now, though

[jaschrumpf]

Originally Posted by brak

not a big surprise. they always had odd selection and exorbitant prices (even compared to WM).

Might be some good deals now, though

Really? In the Baltimore area BW always had lower prices than WM on similar goods.

[brak]

Originally Posted by jaschrumpf

Really? In the Baltimore area BW always had lower prices than WM on similar goods.

Well, not everything. I did get a good deal on a dinghy anchor at their store in Key West, so I can't complain.

[LittleMissMagic]

I sometimes found good prices on stuff but they were generally light in the area of sailing hardware. Sad to see it go really. It was my only port in a storm when I was dragged to the local mall.

[MSter]

Originally Posted by LittleMissMagic

I sometimes found good prices on stuff but they were generally light in the area of sailing hardware. Sad to see it go really. It was my only port in a storm when I was dragged to the local mall.

Agreed! It definitely seems they catered to the powerboat crowd. Not much in-store inventory in the way of sailing hardware. It seems if I was in the market for dock shoes or other non-application specific item, it would be worth stopping in. I did recently buy an aluminum collapsible wheelbarrow with nylon/canvas for $16 on clearance from $60. Is a great little dock cart that folds to fit in the back of the truck. So while I did not shop there very often, I will miss them.

[JimMcGee]

Boaters World, like West varied their stock. Different stores catered to what they thought was their local market.

In the long run a West Marine monopoly means higher prices and fewer choices for us. Now manufacturers only have one nationwide retailer where they can sell their products. So if they can't reach an agreement for West to carry their products they may decide it's not worth being in the marine market. That's especially bad news for small mom & pop brands. West is also carrying far fewer SKUs then they used to, which means fewer choices in their stores.

Yes there are local shops in marinas, but they can't buy at the same volume as a national retailer can. That means their costs are higher and you pay more.

There're still online stores, but in a lot of cases you want to be able to look at things before you buy or to see items from two manufacturers to compare quality or features.

And liquidation doesn't necessarily mean great deals. Liquidators often mark up prices before the "mark down". I checked out the liquidation prices at Circuit City and found they were higher than Best Buys regular prices.

Jim McGee

[SJ34]

Originally Posted by JimMcGee

From International Boat Industry (IBI) Magazine today


Boater's World to be liquidated
By IBI Magazine
In its bid, Gordon Brothers and Hilco guaranteed that Ritz would collect at least 90 per cent of the value of the goods sold during the liquidation. Hilco spokesman Rick Kaye told IBI that the liquidation sale would start over the weekend. "There is a predicted time that the sale runs its course," Kaye said. "Very rarely does it go longer than six to eight weeks." According to a Hilco statement, there is US$100m worth of inventory being sold.

Gordon Bros. can guarantee 90% value on all stock sold? Really? In other words, BW has gone bankrupt, was sold at auction and can expect to recieve the equivilent of $775,193 per store at final resolution.

There's got to be some fine print in there somewhere. What about the product that isn't sold, like all of the BW logo'd apparel and worthless trinkets. Maybe that's the 10% un-accounted for?

[mccary]

Here in the DC region, and I suspect elsewhere, when Circuit City went through liquidation recently the local TV stations all carried stories warning people that the "deals" might not be real deals and for the buyers to be careful when purchasing. They suggested that you be sure when you buy, that what you are getting is what you want and the price is a "good" price. Seems that the Circuit City was charging higher prices than they did in weeks before the liquidation started! I haven't been to local Annapolis Boater's World but I would not be surprised if the same were true.

[slsyzygy]

Gordon Brothers Group handled Circuit City, Linens & Things, Spencer Gifts and anumber of other Retailers. It is what they do. Buy distressed Companies and profit off their disposal.

I am sure they will attempt to do the same thing to the public, as they did with Circuit City. BUT, boaters have only so many boat bucks and generally use them more frugally than the average consumer buying TVs, MP3 players and the like.....

That is a lot lot of jobs lost and it is sad.

S-