Tommy’s Boats placed under receivership
A Delaware-based crisis management consulting firm has been appointed as the receiver for Grand Rapids-based boat dealer Tommy’s Boats, which has mounting financial and legal woes.
A report in Crain’s says Thomas Beane, president of Beane Associates, has taken control of the boat dealership’s assets and income and will work to pay off its debts and fees.
The move comes after Tommy’s filed a lawsuit against American boatbuilder Malibu Boats in April, arguing that Malibu oversupplied hard-to-sell inventory to several dealerships to inflate its sales, market share and stock values artificially.
Malibu Boats has now issued a statement, saying it ‘intends to vigorously defend itself against the claims made by Tommy’s.’
Tommy’s Boats is facing its own lawsuit from M&T Bank, alleging the company has defaulted on more than $115m in loans.
Tommy’s Boats told Crain’s that it is cooperating.
“By consenting to the receivership, we believe we will be in the best position to manage our financial situation, and ultimately emerge with a revitalized and stronger Tommy’s business, while our lawsuit against Malibu is ongoing,” the statement to Crain’s said.
“This decision provides us with the best path to move forward, and one that we believe will create the best available opportunities for our employees, customers, other stakeholders and company.”
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