High performance catamaran builder Gunboat, which is located in Wanchese, North Carolina, has filed for Chapter 11 protection under the Federal Bankruptcy Code. For the past two years the company has been "quietly struggling", according to Gunboat founder and CEO Peter Johnstone, despite of the fact that its boats receiving high praise from sailors and the media. He blames a series of mistakes, disputes and adverse business conditions for the company's struggles.
"The Chinese built Gunboat 60 series cost Gunboat a fortune to sort out. The Chinese builder has fought its contractual obligations to manage, support, pay and reimburse for the completion, rework and warranty costs. Gunboat felt an obligation to its customers and spent millions out of pocket, which proved to be a huge strain on our resources, focus and productivity", says Johnstone.
He adds other problems including a G4 capsized during a regatta off St. Barth in April, which was captured in a viral video. Johnston states a G4 was involved in a recent collision with a photo boat during a magazine test in Annapolis, and that both incidents has led to a slow down in sales of the model.
The domino effect of so many problems during such a short period, Johnstone explains, forced him to seek Chapter 11 protection. But he is optimistic that the company can recover: "The operations have shown a nice turn-around in the past few months. Boats are being built, and we are meeting our plan for operating the business and recovering through the Chapter 11 process".
We wish Johnstone and his team the best of luck.
"The Chinese built Gunboat 60 series cost Gunboat a fortune to sort out. The Chinese builder has fought its contractual obligations to manage, support, pay and reimburse for the completion, rework and warranty costs. Gunboat felt an obligation to its customers and spent millions out of pocket, which proved to be a huge strain on our resources, focus and productivity", says Johnstone.
He adds other problems including a G4 capsized during a regatta off St. Barth in April, which was captured in a viral video. Johnston states a G4 was involved in a recent collision with a photo boat during a magazine test in Annapolis, and that both incidents has led to a slow down in sales of the model.
The domino effect of so many problems during such a short period, Johnstone explains, forced him to seek Chapter 11 protection. But he is optimistic that the company can recover: "The operations have shown a nice turn-around in the past few months. Boats are being built, and we are meeting our plan for operating the business and recovering through the Chapter 11 process".
We wish Johnstone and his team the best of luck.