Fort Lauderdale, June 12, 2026, 16:58 (ET)
- West Marine will shut down 59 stores in 23 states in its Chapter 11 process.
- Five retention bonuses worth $1.075 million went out on May 1, just over two weeks before the bankruptcy was filed, according to a court filing.
- The company said it is still open as it moves through an expedited restructuring with support from major lenders and equity holders.
West Marine’s bankruptcy is drawing new attention after the retailer said it will shut down 59 stores. According to court filings, insiders got bonuses ahead of the Chapter 11 move. West Marine filed for Chapter 11 on May 17 in the U.S. Bankruptcy Court for the District of Delaware, saying it had a restructuring support deal with key lenders and equity owners.
West Marine is shutting stores in 23 states, Powerboat News reported, citing court filings from June 1. Florida gets the hardest hit with eight closures, Michigan loses six, and both California and Washington will each see five stores go. Both Maine stores—Portland and Southwest Harbor—are listed for closure, so Maine will have none left.
Hilco Merchant Resources is handling the liquidation sales as part of a consulting deal signed May 10, a week ahead of West Marine’s bankruptcy filing. Powerboat News said a court greenlit the store-closing plan on June 9. Sales are due to last through late September. Powerboat News also reported that West Marine could add more locations to the closing list as it keeps looking at its store portfolio.
West Marine’s restructuring took on a new edge as details on executive bonuses surfaced. Trade Only Today said Friday that five top execs collected $1.075 million in retention bonuses May 1. CEO Paulee Day got $425,000, CIO John F. Devine $100,000, chief human resources and supply chain officer Mark Howerton $175,000, CRO Michael Hoye $150,000, and CFO Sahil Wadhwa $225,000.
The court filing calls those entries insider payments within a year before bankruptcy. Earlier retention bonuses to Day included $475,000 on May 21, 2025, and $237,500 on June 30, 2025. Trade Only Today said a $1.2 million bonus on June 9, 2025, went to former CEO Carl S. Rubin, also identified as Chuck Rubin.
West Marine’s unpaid bills put unsecured vendors at risk too. Trade Only Today said the company has over $65 million in debt to its 30 biggest vendors. Garmin is owed $8.57 million, Virtual Supply $5.8 million, Sierra International $4.7 million and East Penn Manufacturing $4.43 million. Smaller vendors are caught up as well. David Kelton at American Blue Claw told Trade Only Today the retailer still owes his firm around $12,000.
West Marine is calling the move a restructuring, not a shutdown. In the May 17 release, Day said, “West Marine has been a trusted partner to the boating community for decades,” and added the process would help “optimize our operations and rationalize our footprint.” The company said customers will still be able to shop at roughly 200 stores, through its websites, and the West Marine Pro App. Business Wire
The next stage will be centered on the court process around the sale and restructuring schedule. According to ElevenFlo, a bankruptcy docket-tracking firm, the June 11 hearing was scrapped after key items were settled or pushed, with issues on cash collateral and disclosure now slated for a June 18 omnibus hearing. Sale milestones listed by the service include a June 26 bid deadline, a possible June 29 auction, a July 22 deadline for sale objections, and an August 3 sale hearing.
