Lake Cumberland Marine, a dealer of performance boats in Somerset, filed for bankruptcy protection this week.
The company, which employs about 30 people, hopes to create a reorganization plan and emerge from Chapter 11 protection within a few months, said controller Wesley Evans. A year ago, the company employed 45, but it has scaled back as its business has slowed. Evans said the company hopes to avoid any further cuts as it reorganizes.
The recession and its impact on financing for both boat buyers and dealers' inventories led to the filing. "It has been the lowest sales year for marine products since the National Marine Manufacturers Association started keeping records in the 1960s," Evans said.
Its bankruptcy petition did not list specific numbers for assets and liabilities, noting only that each of those figures was between $10 million and $50 million. Its 20 largest unsecured creditors have claims of about $4.71 million, according to the filing.
Evans said that over the next three to four months the company hopes to establish a way to broker excess inventory as part of the reorganization.