I've spent the better part of the past day and a half on the phone with folks all over the industry – boat manufacturers, tackle companies, pros and anyone else with a stake in bass fishing – all on the subject of the Genmar bankruptcy.

If there's a general consensus out there, it's that there are few answers – only questions. When the parent company of what's arguably the most dominant bass-boat brand in history – a bass-boat brand that underwrites about half of all significant tournament angling – that's only natural.



Some of those questions will start to be answered tomorrow, when Genmar presents its restructuring plan to the bankruptcy court. Then we might know a little more about plans for Ranger – specifically its massive presence in angler and tournament sponsorship, as well as its contingency monies.

As far as I can tell – both from written statements by Genmar, as well as conversations with manufacturers and financial experts – cash-flow problems created the BK. Boat sales are slow. Maybe the slowest they've ever been. (Maybe not, when you consider the Arab Oil Embargo.) Bottom line: There's much less money rolling in.

At the same time, banks are curtailing capital lending. There's only one company that finances dealer floorplans right now, and that's GE Capital Solutions. (KeyBank and Textron pulled out of the business). GE shocked the dealer network in April when it raised floorplan interest rates.

As well, Genmar's capital lenders Wells Fargo and Fifth Third banks are likely loath to further extend themselves inside a struggling market and may have called Genmar's notes.

Genmar chairman and CEO Irwin Jacobs recently told Soundings Trade Only Today that "The banks pushed us to a level that we couldn't put up with." And in a press release about the BK stated: "I've always looked for ways to enhance Genmar's balance sheet and felt that even though business conditions were incredibly difficult, there were alternatives available. Unfortunately, I didn't have the necessary time to complete any alternative financing acceptable to the banks."

In other words, Wells Fargo and maybe Fifth Third probably felt cash flow wasn't strong enough against their lending (the capital loans almost certainly would have had such criteria written into them), they wanted out or called the notes, and the bankruptcy's an effort to negotiate payments and keep those banks involved until the market rebounds.

That's all speculation, but what I can say is, in the various conversations I've had, the following themes have reverberated:

  • Ranger itself, despite market conditions, is in pretty good shape (relatively speaking). The big drain on Genmar's balance sheet has been its saltwater products, runabouts and big-ticket luxury boats.

  • There will be market instability this year with a heavy inventory of late-model "new" boats, although again, the feeling is that'll be more pronounced in the boat categories outside of bass fishing.

  • In order to exit bankruptcy as a stronger company, Genmar will need to continue to market its product. Ranger's main marketing strategy is angler and tournament sponsorship and contingency awards. The court will surely question that tomorrow. It'll be up to Genmar to convince the court its Ranger marketing strategy is sound.

  • The pros, on a whole, know very little about what the future holds. They're waiting to hear from Ranger after the court date tomorrow, but for now, it's full speed ahead with fishing and promotion. Generally, the pros feel everything will be about the same for them – that this is simply a business deal and Ranger will emerge stronger than before.

  • Some grassroots fishermen aren't sure how the filing will affect their relationships with local dealers. They worry that dealerships will continue to close, those that survive will be left hanging by a thread, and dealer support of local grassroots angling could dwindle even further.

    Any way you look at it, tomorrow's a very big day in the history of bass fishing. Here's hoping things go well for Genmar.