Bankruptcy sale; Ranger, Champion & Stratos

[WRB]

Glenmar the owner of Ranger, Champion, Stratos and several other boat brands has put them up for quick sale; http://www.boating-industry.com/output.cfm?id=2345977

WRB

PS; Glenmar could also be sold as a business unit.

[R520dvx]

It's in the rumor mill that Ranger already has a buyer .... or buyers. It is the money maker of Genmar.

[cart7t]

"Important to all our dealers we believe is that in addition to the purchase price for the assets, all interested investors will provide the necessary capital to very effectively support the boat businesses purchased," Cloutier said. "This is very critical for both the short- and long-term success of the brands and their dealers, particularly given this difficult industry economic environment."

[Glenn]

Curious if Irwin Jacobs buys all of them, or is at least part investor.

[cart7t]

Looks like the economy tanking and Genmars introduction of a new technology (VEC) which is used in their new Fincraft line at the beginning of the year probably strained the resources at a really critical time.

Genmar announced sales down only 5% in fiscal 07-08 in June of last year.  Then the new VEC (Fincraft) line entering the market to compete against aluminum boat sales in January of this year and then their Yacht group begins laying off in March.  Then bankruptcy announcements in June.

[George Welcome]

Key in that "article" was the first word of the third paragraph: Advertisement

[cart7t]

This isn't helping.

Outboard Sportfishing Boat Sales Trend

Rolling 12 month year-over-year % change in unit sales

[lrglipman]

Anybody have an update on Stratos and their bankruptcy and also what about the Stratos clothing line? I just bought a new 285xl but wasnt aware of their finacial situation hope that doesnt affect my purchase.

[Jig Man]

Jacobs is already a 40% share holder.  He'll probably wind up with the whole ball of wax at a bargain.

[cart7t]

Jacobs is already a 40% share holder. He'll probably wind up with the whole ball of wax at a bargain.

Or not.

Apparently, Jacobs isn't the only one bidding on the boat maker's assets. Last week, the U.S. Bankruptcy Court approved the grant by Genmar to give certain exclusivity and expense-reimbursement rights to an unnamed bidder not affiliated with Jacobs or Genmar, according to the Manchester press release.

http://twincities.bizjournals.com/twincities/stories/2009/11/09/daily9.html

In fact, it looks like Jacobs wants to take his VEC technology and make wind generators.

Earlier this year, Jacobs said he planned to get into the wind-turbine business through his subsidiary VEC Technology, which has a new process for manufacturing fiberglass blades.

http://www.twincities.com/news/ci_13748646?source=rss

[cart7t]

Anybody have an update on Stratos and their bankruptcy and also what about the Stratos clothing line? I just bought a new 285xl but wasnt aware of their finacial situation hope that doesnt affect my purchase.

It's unlikely you'll have an issue. The plants are all up and running, business as usual. Of the 3 bass boat lines, Champion would seem to be the one with the foggiest future. That brand, while carrying a very strong, loyal customer base is also overlapping into the Ranger line, price wise. All three could be kept with Champions line being narrowed to a different market or it could be sold off and the remaining, Ranger, covering the upper end market and Stratos covering the entry level market.

Too soon to tell yet.

[Glenn]

Curious if Irwin Jacobs buys all of them, or is at least part investor.

Looks like Jacobs wants to own the whole shebang:

"Jacobs has said he plans to be the highest bidder for Genmar's assets."

http://www.tradeonlytoday.com/home/500824-jacobs-resigns-as-genmar-ceo

[lrglipman]

Thanks for all of your replys. I've already bought a stratos, I just hope they will continue to honor the warranties and such.

[Jig Man]

I talked with a former Genmar company president yesterday.  He feels that this is an Irwin takeover and we'll see one of the major lines go away while Stratos and Ranger will stay.

[cart7t]

If you look at the entire Genmar line I suspect that any purchaser would be shedding more than just one brand.  There's a lot of overlap of brands whether bass boats, pleasure boats or ski boats.  They've got too many boat companies competing against themselves vs the competing against the rest of the market. 

[Jig Man]

You are right Cart.  I'm afraid that Champion is doomed to oblivion if not sold.  It has hit into the Ranger market for several years eventhough their budget was threadbare.