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

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But what the 14 year-old Durham boat maket and its parent company, Minneapolis-based , haven’t been able to fend off is a record-setting plunge in sales for theit industry. Genmar, billed as the world’se second largest boat on June 1 filed for Chapter 11bankruptcyh reorganization, taking its 20 far-flung subsidiaries, including along with it. The news of the filinf came to Triumph, which only a year ago employerd up to 120 workers at its Golden Drivd manufacturing plantin Durham, while the firm is in what it describesw as a “planned summer shutdown.
” General manager Dave Muelletr declined to comment on Triumph’s statuds or what the reorganization might mean for the company down the road. “You really need to talk to Genmar,” he says. “It’ been decided that everything about (the filing) should come out of one Attempts to reach Genmar CEOIrwin L. Jacobs were not Citing assetsof $237.5 million and liabilitie of $216.5 million, Genmar statea in legal documents that it has signefd a financing plan with two banks Ohio-based and California-based that will allow it debtor-in-possession statud during the reorganization, pending court approval.
That meana it would be free to use its assets in the ordinary course of business whilre the bankruptcy reorganization is Ingood years, Genmar’s manufacturing subsidiaries turned out 24,000 fishing and recreational vessels a most of them of fiberglass construction, posting sales of almost $1 billio a year. In Genmar estimates revenue for the fisca l year that ends June 30 will be aboug halfthat – $460 million. Triumph has been the wild card in the Genmatr lineup ofmarquee craft, which includes such recognizable brand names as Ranger, Hydra-Sports and The Durham firm makes fishing and ski boats out of a low-densitgy polyethylene plastic.
The finished product is billes as less expensive andmore impact-resistant than fiberglass, and the materiao is recyclable. The company’s onlined videos put the craft through a torture chamberdof tests, including a collisio n with a truck. Founded in 1995 as and late r renamed, the company came under the Genmar umbrellain 1999. A reporty put Triumph’s annual sales at nearly $11 millionh as of July 19, 2008. Industry observera have been left to speculateabout what, will emerge. “It’s a very good says Jon Mohr, associate editor of boating-industry.com, which is following the case. “I think it’s too earlyh to say.
” At its height, the North Carolinz marine industryemployed 30,000 and posted annual sales of $500 million. Mike Bradley, who workws in a state agency supporting the says thecredit crunch, gasoline price volatility and the recession have combined to force 75 percent of manufacturers to cut stafr and hours. “My job now is doing triage,” he “Nobody wants a recreationalk boat.” As for the Genmar reorganization, Bradley believes Triumpbh will be one of the brands witha future. “I am reasonably confident theywill emerge,” he “Their product is unique.
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