Tommy’s Boats lands in receivership as legal battles add up

[Horton]

it's official this time

https://www.crainsgrandrapids.com/news/retail/embroiled-in-three-lawsuits-tommys-boats-lands-in-receivership/

[buechsr]

MBUU quarterly financials released an hour ago…I’m not Warren Buffett, but I  don’t think this looks good:

https://stockhouse.com/news/press-releases/2024/05/02/malibu-boats-inc-announces-third-quarter-fiscal-2024-results

Link to earning call at 8:30 this am on malibuboats.com

 

[The_MS]

Its only going to get worse for many boat manufacturers. Credit cards nation wide are maxed out and interest rates are still very high for people to take 10 year loans on boats.  You will be seeing some super deals on pontoons and runabouts by mid summer. 

[Mastercrafter]

56 minutes ago, The_MS said:

Its only going to get worse for many boat manufacturers. Credit cards nation wide are maxed out and interest rates are still very high for people to take 10 year loans on boats.  You will be seeing some super deals on pontoons and runabouts by mid summer. 

Unfortunately I think boats are going to be the least of our country's collective worry in a while here. 

 

[UWSkier]

The MC earnings call next week will be highly suggestive of whether this is a MBUU problem or an industry problem.

[buechsr]

10 minutes ago, UWSkier said:

The MC earnings call next week will be highly suggestive of whether this is a MBUU problem or an industry problem.

Last qtr:

 

[stevezie]

2 hours ago, Mastercrafter said:

Unfortunately I think boats are going to be the least of our country's collective worry in a while here. 

 

Well the value of our money has been roughly cut in half over the last five years.  Taking that into consideration, this is trending mostly with inflation.

The problem with many recreational vehicles like boats, is they have completely abandoned any approach to affordability and created product lines all about high cost, high profit products.  For a significant chunk of their customer base, most of their products were only affordable via low interest rates.  This was great when it was cheap to borrow money.  Now that interest rates have gone up, a significant part of their customer based either can't afford their products because the total cost is too high, or they are simply choosing not to buy because they would lose the low rate they have on their current boat.  

The damage is happening across all markets for all "discretionary" high cost toys.  The UTV market is a flooded with inventory.  You can't give campers away.  Harley-Davidson business is way down.  

Generally speaking, the market for used boats under $40k hasn't been impacted in the same way as boats over $40k.  

[Drago]

That ⬆️ @stevezie, and, just speculating here, also I think the boat market is saturated. Very few customers out there anyway.

[Hallpass]

They can just forgive that Credit Card debt, right?  🙄

[kmenard]

@stevezie I am trying to buy a camper and the person selling it was asking more than JD Power said it was worth...she thinks she will get more money for it as the season starts...guess we will see.

[DW]

Sadly although one could expect it, Malibu owners are starting to report various locations being locked or closed.  The habit of borrowing and borrowing cheap money for toys doesn’t always end well.

[markn]

I will check out the Tommy's here in Clermont, FL.  They sold a ton of boats here, but lately, their lot is FULL of unsold boats.

[UWSkier]

Hope folks in NV and AZ who had boats in at Tommy's got them out before the gates were locked up.

[markn]

Just stopped by Tommy's in Clermont.  Gate was open and there was some activity.

 

[jpwhit]

Just saw this....

East Coast Flightcraft
is proud to bring you an exclusive oppurtunity
to get into a new Malibu or Axis Boat
while getting the largest discounts of all time!

We have approximatley 50 inbound boats
that have been aquired from other dealers
across the country so that we may offer them
to you at historically discounted prices.

If you have ever been on the fence about getting into a new Malibu or Axis boat,
Now is the time!

Financing is available for qualified buyers
and transport can be arranged


Get yours before they're GONE!

[Cooper_Trelawney]

I checked out East Coast Flight Flightcraft and they even have 3 TXIs in stock.  Maybe someone can get a great deal on a new ski boat.

[Horton]

We are talking about Australia, right? 

[rockdog]

6 minutes ago, Horton said:

We are talking about Australia, right? 

Leave us out of it @Horton!

[Horton]

@rockdog I thought "Flightcraft" was specifically an Australian boat thing. I looked it up and this is about the US market.

 

Anyhow => So crazy.