Sandy Cove Marine in Receivership
Boating Industry Canada has learned that Sandy Cove Marine in Innisfil, Ontario, is in receivership. A court-appointed receiver from Grant Thornton Ltd has been appointed to sell of the dealership’s inventory.
The Barrie Advocate newspaper reported that Scott Dallimore, whose father owns the business said that the dealership’s major lender GE Capital Canada Finance Inc, demanded repayment of loans last March. “They wanted C$5.5 million by August and that just wasn’t going to happen,” Dallimore said. “My father has been an iconic businessman in this town with a good reputation. There just doesn’t seem to be any compassion anymore.”
Dallimore told the newspaper that his father is not allowed to work at the business while the receiver sells assets. “They are selling boats at about half-price, which is money that goes to the receiver,” Dallimore said. “We are a seasonal business and they came after us in March before the spring selling season.”
A receiver’s report filed with an Ontario court said that the company had about C$6.7m in assets in its two locations. The report said there was too much inventory in Ontario to sell to other dealers, so the receiver decided to sell it at retail.
“The Receiver recommends that when retail sales volumes decrease such that the cost of operating the respondents businesses exceeds the benefit of retail sale, that the receiver cease operating the respondents business and sell the remaining inventory through a court-approved liquidation sale,” the report states.
The report went on to state that about 25 employees will lose their jobs. The dealership sold Chaparral, Larson and Bayliner new boats as well as used boats.
