Genmar files Chapter 11: so you wanna be a pro?

[GKramer]

Nobody had to tell boat dealers things were tough, but this latest news has to be a low water mark.

Wonder if they'll bring back the $200 prize limit for California tournaments. No sponsors required....

gk

www.kramergonefishing.com

[Ringer]

No surprise here. The same thing that brought the car companies down is impacting all businesses. No more easy credit. How many people pulling a new $50000 boat behind a $40000 truck and parking them in their $500000 driveway could have bought those things without easy credit and good equity in their homes? Life as we knew is for the last 30 years is over. Now you will have to have either cash or a huge down payment to buy any luxury items. It will be interesting and scary to see how the fishing industry looks a year from now. Sad times.

[j10b]

Didnt some of these boat cos do it to themselves? The desire to drive everyone else out and force people into their boat. The huge prices. 43k is high enough for a high end boat WITH motor.


The gas companies had a huge role it trashing the economy last year, but the boating industry kept jacking their prices up. When you have a 200 boat event and 150 are Rangers at 60K a pop...something has to break.

[mark poulson]

What does that do to Ranger warrantees?

[Brian D.]

[mark poulson]

Isn't that Dwight Howard?

[Alex M.]

Isn't that Dwight Howard?

Dwight Who-ard?

[Skeeterman]

Yep. He's going to save Genmar, $30 Billion to the company instead of giving it to GM.So go out and buy your boats it's going be ok.

[Oldschool]

What does that do to Ranger warrantees?

Chapter 11 viods all contracts, including warrantees. You will need to wait until the bank decides how this business is going to continue. Second party warrantees should be availble if no one buys a product line or if the product line discontinued.
Keep in mind that Genmar bought the compnaies they own out of chapter 11, the bank will be looking for a Genmar buyer.
Tom

[fishfarm]

*NM*

[fishfarm]

what brands does Genmar cover?

[FISH2WIN55]

RANGER, CHAMPION, AND STRATOS TO NAME A FEW.

[j10b]

What does that do to Ranger warrantees?

Chapter 11 viods all contracts, including warrantees. You will need to wait until the bank decides how this business is going to continue. Second party warrantees should be availble if no one buys a product line or if the product line discontinued.
Keep in mind that Genmar bought the compnaies they own out of chapter 11, the bank will be looking for a Genmar buyer.
Tom

So this basically means that WORST CASE. if you have a hull or top cap problem. You could be in trouble. All the other components should be covered by that component maker. Even livewell pumps have a warranty. I had a Rule go and got 2 in the mail.

If your passenger console or windshield has an issue or livewell lids this is a problem. Again ALL other Components are covered by THAT manufacturers warranty. If they are in the warranty period.

Rangers dont fall apart so dont worry about it. I never understood the huge deal about a boat warranty. The engine is the big deal, the boat itself is usually pretty bulletproof.

DONT FRET oh and Dont let the LACK of a hull warranty steer you away from a good deal.

[Rick G]

What does that do to Ranger warrantees?

Nothing, business as usual. It is just a business deal done by men much smarter than we all are. Your Ranger, Champ, or Stratos needs warranty repair bring it to us and we will get it TCO. Rick G.

[mark poulson]

Rick,
What about all the big fish you "guaranteed" me I'd catch out of my new Ranger?
Wasn't that part of the "smokin hot deal"???
Seriously, thanks for the reassuring words.

[mark poulson]

Isn't that Dwight Howard?

Dwight Who-ard?

Alex,
I hope you're right. If he's a "who'se he" after this series, the Lakers will be the Champs.
Unfortunately, I think he's for real, and we have our hands full.

[Gary Dobyns]

The answer is YES George, I want to be a pro. To comment on a few questions. Rick G. answered the warranty question. On boat pricing, everyone wants to say Rangers cost 60K. YES some of them do like a Z-520, that is their TOP OF THE LINE BOAT. They also have boats in the teens, 20's, 30's, 40's, and 50's. Let me ask you this, what's the top of the line BassCat, Triton, Champion, Gambler, and a bunch of others retail at???? I hate the fact that the Z-520 and other brands of top boats are in the 60K range, BUT it's not all the boat's pricing. Think of all the things ON THAT BOAT that adds a HUGE cost. How about Hyd. jack plates, meters, trolling motors, pumps, batteries, covers and all the smaller parts?? Everything costs too much. Genmar filing BK just makes consumers have even less faith in the marine indrustry. Wonder how many boats got sold today after the announment?? This whole thing SUCKS. But you know what??? We are getting CHANGE!!

[Bassimus]

Say what you want to about it. All I know is I'm not buying any large ticket item during this tough economic period!! NO WAY! I'm quite sure I'm not the only one who feels this way. I'll sit this one out and watch from the sidelines. I guess my old boat doesn't look that bad afterall.

[MIKE VAN WAGNER]

Gary

To respond to you comment as to how many people were in looking at Boats we had more serious buyers in today than we have had in the last couple of months and sold two new Rangers today.

Mike Van Wagner
Capitol City Marine

[Gary Dobyns]

Great news Mike. I'm glad I was wrong on that statement. I hope all the dealers with all brands had 1/2 that good a day. Again, GREAT NEWS. Don't take tomorrow off to celebrate. Get a couple more

[Mike H]

Nothing, business as usual. It is just a business deal done by men much smarter than we all are. Your Ranger, Champ, or Stratos needs warranty repair bring it to us and we will get it TCO. Rick G.

And that right there is the reason purchased my new ChampioN from Anglers Marine.

Thanks again Rick, I'm loving my boat!

Mike H

[Gene Gray]

Mike,

I hope you didn't sell my white Z520 in the window

[CN]

It does not mean the end of a Compony. Many have filled and came back. What they are admiting to is bad Managment relying on there past history to carry them through. And becoming one big mother ship buying up everyone that was willing to become part of the Genmar Group.

I know I've seen it happen to the Compony I work for. We grew to fast during the good time's. We bought anyone that was willing to sell becouse everybody was making money...false money.

Does the Ranger brand itself as a stand alone part of Genmar have lower number's than all of the the other's at Genmar?

I would have to know that stat first before I would get worried and like someone said here in this post the boat really does not wear out it's the motor that's the one I would worry about. They may ban Outboard's first.

Mike

[Marc]

While I have no "inside" information or any good intell, I suspect that Irwin Jacob's is making a smart business decision to change Genmar's future direction to match customer needs, desires, and capabilities. Genmar Holdings owns many different boat lines and factories, and not all of them are as successful as their bassboat lines.

They also have developed their VEC technology which will likely be a huge improvement in future boat building, and I understand this is sheltered as its own company outside the Genmar Holdings umbrella.

To survive changing and challenging economic times, you probably don't want to be doing the same things that worked in an easy economy. I suspect this is Genmar's reason for restructuring.

If this is the smart business move that I suspect it is, then Genmar will honor all previous warranties of their surviving boat lines. They learned the impact and concern and the value of loyalty during the OMC bankruptcy, and they even honored their hull warranties even though they weren't their own product at that time. That is the stand-up kind of business that Genmar is, and I don't see that ever changing.

Take note that Ranger is still producing boats to this day, and taking orders. They continue to develop their 2010 models with projected delivery in July. Compare that to other competitors who are not restructuring; who are stopping production during this slow economic time and won't be producing new models for 2010, or only making cosmetic changes an delaying production until after September. The question is whose business plan will work the best? My bet is Genmar is making the smart moves like Rick G. has suggested.

ciao,
Marc

[Hipster]

Mike said:

To respond to you comment as to how many people were in looking at Boats we had more serious buyers in today than we have had in the last couple of months and sold two new Rangers today.

Mike Van Wagner
Capitol City Marine

I know of another boat that is getting ordered TODAY!!!!!

[Oldschool]

What does that do to Ranger warrantees?

Chapter 11 viods all contracts, including warrantees. You will need to wait until the bank decides how this business is going to continue. Second party warrantees should be availble if no one buys a product line or if the product line discontinued.
Keep in mind that Genmar bought the compnaies they own out of chapter 11, the bank will be looking for a Genmar buyer.
Tom

So this basically means that WORST CASE. if you have a hull or top cap problem. You could be in trouble. All the other components should be covered by that component maker. Even livewell pumps have a warranty. I had a Rule go and got 2 in the mail.

If your passenger console or windshield has an issue or livewell lids this is a problem. Again ALL other Components are covered by THAT manufacturers warranty. If they are in the warranty period.

Rangers dont fall apart so dont worry about it. I never understood the huge deal about a boat warranty. The engine is the big deal, the boat itself is usually pretty bulletproof.

DONT FRET oh and Dont let the LACK of a hull warranty steer you away from a good deal.

Agree, it's how the dealer rigs the boat and the components used that make up a bass boat. Buy from a reputable dealer and you shouldn't have any warranty problems.
Tom

[BigBoy]

You guys are over complicating the issue. The company probably had a big loan out which is typically of a inventory company(sells product after it is created) has to pay the workers, parts etc. A payment was due, the company couldn't make the payment, which is a default so the interest rate went up. Now the company really couldn't make the payment. So the creditor is threatens a lawsuit. Genmar declares Chapter 11 Bankruptcy, they no longer have to make the big payment. Genmar and the creditor allows a judge to broker an arrangement. Which usually includes renegotiation of debt to pennies on the dollar, and the company resurfaces. Typically a company will give a percentage of ownership to the creditor and repay a portion of the original debt on a different time table or interest rate. As all current stock in a public company is worthless after bankruptcy, because the ownership percentage is changed, because more stock is allocated to the creditor. Also if the company is setup as several companies under a holding company, it can decide what companies to include and not include in a bankruptcy. So until someone produces legal documents no one will know the affected brands.

Now if they declared Chapter 7, we'd all be screwed, because the assets would be liquidated and who knows what would happen.