West Marine is in the opening weeks of a Delaware chapter 11 built around a prearranged dual-track process: recapitalize around consenting secured stakeholders unless a sale of substantially all assets produces a better result. The company filed on May 17, 2026, with eight affiliated debtors after macro volatility, inflation, high fixed costs, and roughly $55 million of annual lease obligations strained a 200-store marine retail platform; CEO Paulee Day’s first-day declaration also reported about $21.5 million of cash and a capital stack including ABL, FILO, term loan, trade, and lease obligations totaling about $549.2 million First Day DeclarationDkt. 15.
The filed path is controlled by a restructuring support agreement backed by all FILO lenders, 96.2% of term loan lenders, and 93.9% of equity interests. The default transaction would equitize $251.2 million of term loan claims, pay or roll the ABL and FILO debt into exit facilities with three-year maturity extensions, and provide general unsecured creditors a $250,000 distribution if the class accepts the plan; the same framework preserves a sale track with a June 26, 2026 bid deadline and term lender credit-bid rights First Day DeclarationDkt. 15. Operationally, the debtors sought authority to keep their centralized cash management system, honor related bank and intercompany mechanics, and continue ordinary-course forms while the cases proceed Cash Management MotionDkt. 12.
The current docket shows the case moving from first-day stabilization into constituency formation and store rationalization. An ad hoc group led by Evolution Credit Partners and Oaktree disclosed combined holdings of about $33.4 million of FILO loans, $99.0 million of term loans, and equity or warrant interests, confirming secured-creditor sponsorship remains central to the case . The U.S. Trustee appointed a seven-member official unsecured creditors’ committee on May 29, including landlords and major trade vendors such as Garmin, Virtual Supply, East Penn, and Modern Recreational Technologies .
Near term, the debtors are already pruning the footprint: their first omnibus lease-rejection motion targets four closed stores, seeks rejection effective as of the petition date, and sets a June 12 objection deadline ahead of a June 24 hearing Lease Rejection MotionDkt. 102. A utilities objection tees up a June 11 final hearing over adequate assurance, with the objecting utilities arguing the debtors’ proposed segregated account is insufficient for postpetition exposure Utilities ObjectionDkt. 101.