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Hi gang, Rick Ostler here from North American Waterway bringing you Bayliner Boats along with news and views from the boating industry. Yacht and motorboat manufacturer Brunswick has offered to buy Redmond-based Olympic Boat Centers out of bankruptcy for $48 million, but…

Olympic Boat and its affiliates run 20 dealerships from British Columbia to California, making it “one of the largest, if not the largest, dealership in the world” for Brunswick, according to court papers filed in Woodland Hills, Calif., where Olympic filed for Chapter 11 protection last month.

On Wednesday, a bankruptcy-court judge is expected to schedule a Sept. 23 auction of Olympic’s assets and spell out procedures for other bidders to compete with the Brunswick proposal, said David Shemano, a Los Angeles attorney representing Olympic’s unsecured creditors.

Brunswick, whose brands include Bayliner, Maxum, Meridian and Mercury Marine, already owns 12 percent of Olympic Boat’s parent company.

The remainder is mostly owned by private-equity firm The Riverside Co., of Cleveland, which bought majority control of Olympic in 1998 and launched an expansion push.

The $48 million offer, detailed in a motion filed by Olympic’s attorneys last week, would provide $47 million to secured creditor GE Commercial Distribution Finance. But it would leave less than $1 million for bankruptcy costs and payments to other creditors, Shemano wrote in a court filing.

He called Brunswick’s offer “less than adequate.”

Olympic reported assets between $10 million and $50 million and debts between $50 million and $100 million. We will keep you posted on how this all plays out.
Thanks to;Business & Technology | Brunswick bids $48 million to buy Olympic Boat Centers | Seattle Times Newspaper

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Rick Ostler, North American Waterway

Tags: brunswickcorp, bayliner boats, Olympic Boat Centers, Maxum, Meridian, Mercury Marine,

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Citing weak retail demand for boats in the U.S., a major boat manufacturer said it would suspend production at its Arlington plant — leaving 425 employees without regular pay for a month. The announcement by Lake Forest, Ill.-based Brunswick Corp.

Brunswick Corp. makes a number of different brands of boats, including Bayliner, Maxum and Meridian, follows last week’s Chapter 11 bankruptcy filing by Olympic Boat Centers, a Redmond-based boat dealership.

“The U.S. marine industry is currently challenging, driven by an uncertain economy, high fuel prices, the housing slump and other economic factors that have affected American consumers’ confidence and eroded their discretionary spending,” Brunswick spokesman Daniel Kubera said in an e-mail.

Most of Brunswick’s fiberglass manufacturing plants, including that in Arlington, will be suspending production during the third quarter, Kubera said. Employees directly involved in boat manufacturing will go on furlough, while other employees will report to work.

The 425 affected employees will not receive regular pay, but Brunswick will advance holiday pay if applicable and also pay for medical and dental benefits.

Olympic Boat Centers, which filed for protection in U.S. Bankruptcy Court last Thursday, sells Brunswick boats in 19 locations in Washington, California, and Canada, making it one of the company’s largest dealers.

In a written statement Tuesday, Olympic Boat Centers blamed the “sluggish retail boat market” for its bankruptcy filing, under which it will be able to continue to sell boats.

In its bankruptcy filing, the company said it had assets of $10 million to $50 million and liabilities between $50 million and $100 million. Thanks to P-I reporter Joseph Tartakoff  for this. Joe can be reached at 206-448-8293 or joetartakoff@seattlepi.com.

Boat manufacturer in Arlington suspends production

Tags: baylinerboats, Brunswick Corp, Maxum, Meridian, Olympic Boat Centers

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