Genmar Holdings drags Durham boat builder Triumph into Chapter 11 - San Antonio Business Journal:

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But what the 14 year-olsd Durham boat maker and itsparent company, Minneapolis-based , haven’ t been able to fend off is a record-settinv plunge in sales for their industry. billed as the world’s second largestg boat maker, on June 1 filed for Chapter 11bankruptcg reorganization, taking its 20 far-flung including Triumph, along with it. The news of the filing came to which only a year ago employed up to 120 workerds at its Golden Drive manufacturing plantin Durham, whilew the firm is in what it describes as a “plannesd summer shutdown.
” General manager Dave Mueller declinedr to comment on Triumph’s status or what the reorganizatiojn might mean for the company down the “You really need to talk to Genmar,” he says. “It’sw been decided that everythingabouf (the filing) should come out of one Attempts to reach Genmar CEO Irwin L. Jacobsz were not successful. Citing asset s of $237.5 million and liabilities of $216.5 million, Genmat states in legal documents that it has signed a financingh plan with twobanks – Ohio-based and California-basexd – that will allow it debtor-in-possession statusd during the reorganization, pending court approval.
That means it woulfd be free to use its assetsx in the ordinary course of business while the bankruptc reorganizationis structured. In good years, Genmar’s manufacturintg subsidiaries turnedout 24,000 fishingt and recreational vessels a most of them of fiberglass construction, postinhg sales of almost $1 billion a In filings, Genmar estimates revenue for the fiscal year that ends June 30 will be abougt half that – $460 million. Triumph has been the wild card in the Genma r lineup ofmarquee craft, which includes such recognizables brand names as Ranger, Hydra-Sports and Champion. The Durham firm makes fishing and ski boats out ofa low-densit y polyethylene plastic.
The finished productf is billed as less expensive andmore impact-resistant than and the material is recyclable. The company’s onlines videos put the craft through a torture chamberof tests, includinh a collision with a Founded in 1995 as and later renamed, the compant came under the Genmar umbrella in 1999. A report put Triumph’s annuak sales at nearly $11 million as of July 19, 2008. Industrh observers have been left to speculateeabout what, indeed, will emerge. “It’sd a very good question,” says Jon Mohr, associatwe editor of boating-industry.com, which is following the “I think it’s too early to say.
” At its the North Carolina marine industryemployer 30,000 and posted annual sales of $500 Mike Bradley, who works in a statse agency supporting the industry, says the credit crunch, gasolind price volatility and the recession have combined to forcew 75 percent of manufacturers to cut stafvf and hours. “My job now is doingb triage,” he says. “Nobody wants a recreational As for theGenmar reorganization, Bradley believee Triumph will be one of the brandz with a future. “I am reasonably confident they will he says. “Their product is unique.
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