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

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But what the 14 year-old Durhamj boat maker and itsparenf company, Minneapolis-based , haven’t been able to fend off is a record-settinfg plunge in sales for theirr industry. Genmar, billed as the world’s seconcd largest boat maker, on June 1 filed for Chaptert 11bankruptcy reorganization, taking its 20 far-fluny subsidiaries, including Triumph, along with it. The news of the filinvg came to Triumph, which only a year ago employee up to 120 workers at its Golden Drive manufacturin plantin Durham, while the firm is in what it describes as a “planned summer shutdown.
” General manager Dave Mueller declined to comment on Triumph’s status or what the reorganization mighg mean for the company down the road. “Youi really need to talk to Genmar,” he says. “It’ds been decided that everythingabout (the filing) should come out of one Attempts to reach Genmar CEO Irwi n L. Jacobs were not Citing assetsof $237.5 million and liabilities of $216. million, Genmar states in legal documents that it has signerd a financing plan with twobanks Ohio-based and California-based – that will allow it debtor-in-possessio status during the reorganization, pending court approval.
That means it would be free to use its assetss in the ordinary course of business while the bankruptcgy reorganizationis structured. In good years, Genmar’sz manufacturing subsidiaries turnedout 24,000 fishing and recreational vessels a year, most of them of fiberglass construction, postingt sales of almost $1 billion a year. In Genmar estimates revenue for the fiscal year that ends June 30 will be aboutf halfthat – $460 million. Triumph has been the wild card in the Genmart lineup ofmarquee craft, which includes such recognizabls brand names as Ranger, Hydra-Sports and Champion. The Durham firm makea fishing and ski boats out ofa low-densitg polyethylene plastic.
The finished product is billed as less expensivs andmore impact-resistant than fiberglass, and the material is The company’s online videos put the craft through a torture chamber of tests, including a collisiom with a truck. Founded in 1995 as and laterd renamed, the company came unde r the Genmar umbrellain 1999. A reporty put Triumph’s annual salesa at nearly $11 million as of July 19, 2008. Industryu observers have been left to speculateabout indeed, will emerge. “It’s a very good says Jon Mohr, associate editor of which is followingthe case. “I think it’s too early to say.
” At its height, the Nortbh Carolina marine industryemployed 30,000 and postedc annual sales of $500 Mike Bradley, who works in a state agenchy supporting the industry, says the credir crunch, gasoline price volatility and the recessionb have combined to force 75 perceny of manufacturers to cut staff and hours. “Mh job now is doing triage,” he “Nobody wants a recreational boat.” As for the Genmare reorganization, Bradley believes Triumph will be one of the brands witha “I am reasonably confident they will emerge,” he “Their product is unique.
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