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From International Boat Industry (IBI) Magazine today


Boater's World to be liquidated
By IBI Magazine
<!-- There's no image on this page -->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.
 

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

Might be some good deals now, though :)
 

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1975 Newport 28
1986 Hunter 31
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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.
 

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San Juan 26
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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.
 

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Salty
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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.
 

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Discussion Starter #7
Fewer Choices is Bad New for Boaters

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
 

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From International Boat Industry (IBI) Magazine today


Boater's World to be liquidated
By IBI Magazine
<!-- There's no image on this page --> 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?
 

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Aeolus II
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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.
 

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Same company liquidated for Circuit City

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-
 

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Guys - here's what really happens in liquidation. I should know, my company is a large national retailer that shut down 100 odd stores just recently...and yes, we too used Gordon Brothers. They are the biggest liquidators out there. What happens is that those stores - the inventory gets "transferred" to the liquidator. They then control pricing & discounting, even though they continue to use the corporations POS and back-end systems. They basically own the inventory...no longer the bankrupt entity.

Now, a retailer has their "price" that they sell at. Often, that price is what is competitive for a zone/region, etc. If they are in a competitive zone, that zone price will be well below list price.

What happens when Gordon Brothers gets the inventory is that they basically throw away the prior entities pricing scheme...and discount off of list price...

If you know anything about retail, absolutely NO ONE sells at list price...thats like buying a car at MSRP. Anyway, that is why there are both truths in this scenario. Gordon Brothers can claim 40% off...because they are discounting off of list price...but that pricing regime isn't close to what competitors or even the prior entity price at.

Anyway, its not malice...just borderline incompetence in my opinion...
 

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This is bad for boating

Many of these posts are correct. We as boaters will be on the losing end since it leaves only 1 national retailer for boaters. Higher prices and fewer new products being brought to market will be the result of BW going out of business.
The reality of Boater's World going out business is the result of Ritz Camera and its failing business model. David Ritz is not going to be at the helm of his father's business and have it fail on his watch. Never mind the fact that 99% of us no longer have pictures developed and if you want a camera, most will go to Best Buy. Unfortunately Boater's World was a quick and easy way to get the cash needed to pay off the camera store's debt for now. But when the dust settles and BW is gone, keep your eyes open and you'll see prices of boating products go up in price.

And even though Boater's World didn't have rigging for my sailboat, it was still the best place to get cleaning supplies, paint, and painting supplies, dock and mooring supplies, and electrical supplies. These are the things that typically you cannot buy online because its cost prohibitive to pay the HAZMAT and or oversized shipping charges.

I'll miss the store and the great staff that was always helpful. :(
 

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I'll miss the store and the great staff that was always helpful. :(
I bought a discontinued bulkhead compass from Boater's World years ago, over half off. I'm sure they had some good people but here in Melbourne the dust on the floor was more helpful. I quit going there long ago. Still, hate to see the loss of jobs and it's an additional sign that the economy is not well.
 

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Well I have been looking for a GPS, maybe I'll take a ride over there. But, my guess is that it's still going to be cheaper to buy it online.

That said, they have some really good mold killing stuff I think I'll stock up on...
 

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Discussion Starter #15
Shop Carefully

Night Owl is right about the liquidators pricing scheme. Ironically Circuit City is in the same complex as Boaters World here. When they went out they were selling TVs at 30% off. The same TV carried a LOWER price at Best Buy's everyday price - and the Best Buy TV had a full warranty meaning you could return it if there was a problem. This wasn't the case with the liquidator. When I mentioned this to a guy I knew in the store he also warned me that not all the TVs were new - that some were reboxed and not labled as such. I'm not sure if this was true as he was pretty angry about the whole thing.

But if you're buying any kind of big ticket item at Boaters World make sure you check the prices online first and make sure the box hasn't been opened. I'm not sure where manufacturers draw the line on damaged goods. You may be on your own.
 

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I happened to be out in the Chicago 'burbs over the weekend and drove past where Boaters World used to be in Schaumburg. It was already long gone with the sign down and paper on the windows. I went in there a few times maybe five years ago now, and while the employees were friendly and well-intended, they were still basically useless for anything sailing related.

That strip of retail used to be bustling, but now it's looking more and more like a ghost town as the specialist Big Box stores fail and take the rest strip malls with them.
 
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