posted 12-22-2000 12:43 PM ET (US)            

Hope some pieces get sold so at least the parts in the warehouse become availble but it looks like a liquidation. We'll know more if and when a backrupcy is filed. Totally gone if Chapter 7.

I grew up with Johnson and Evinrude motors, and have owned three on different boats over the years. Got my first Mercury(used) on my current boat last year. That rig is now for sale so I can get my first Whaler. It's clear when I do get it, it will not be powered with an OMC motor.

posted 12-22-2000 03:27 PM ET (US)            

Manufacturing & Fabrication - 12/22/00 3:01:32 PM

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OMC trying to sell divisions

United States
Waukegan, Illinois

As it became more evident that Outboard Marine Corp. (OMC) will not rehire most of its laid off workers, reports that the company is seeking buyers for its various engine and boatbuilding divisions are swirling through the recreational marine industry.

Knowledgeable industry observers speculated that OMC's engine manufacturing and marketing operations would make a logical acquisition for a non-domestic engine company with advanced technology seeking to grab OMC's estimated one-third share of the North American outboard engine market, and there were unconfirmed reports that OMC has held talks with at least one such possible suitor.

Similarly, there were reports that OMC had met with a number of boatbuilding companies that would make logical buyers for its boat divisions, which include Chris-Craft, Four Winns, Seaswirl, Stratos, Javelin, Hydra-Sports, Princecraft and Lowe.

Attempts to reach company representatives to confirm these reports have been unsuccessful.

Several weeks ago OMC retained an investment banking firm to advise it on "strategic alternatives." Such investment bankers often act as business brokers who seek out logical buyers for companies that need to be restructured. Sometimes the investment bankers bring in new investors, sometimes they seek buyers for the entire company and sometimes they seek to break up the company and sell off its viable operating divisions.

In the meantime, it is clear that many OMC workers who have been notified of an extended holiday factory shutdown, have in fact lost their jobs for good.

In a letter to OMC employees at its Waukegan, Illinois, headquarters, Jim Rusk, vice president of OMC Human Resources, said the company was shutting down operations indefinitely and 1,190 employees were being permanently laid off at the location.

The letter said, "During the past few months, the operating performance of Outboard Marine Corp. has been disappointing and our efforts to secure additional financing were unsuccessful. As a result, we must shut down our operation indefinitely and, regrettably, let go many of our valued employees."

According to The Associated Press (AP), layoffs were also announced at other OMC facilities in the United States. Around 500 workers were laid off at OMC's Four Winns boatbuilding plant in Cadillac, Michigan, according to AP.

An OMC sales manager located on the East Coast confirmed he too had received a similar letter, and that his company voice mail and e-mail connections had been terminated. He added that he did not know what to tell his dealers about OMC's future.

The letter to Waukegan employees concludes, "Outboard Marine Corp. regrets the need for this action and wishes you well in your future endeavors. Should the Company';s operational situation change, we invite you to reapply for a position with the Company."

Jim Baker, vice president of the Independent Marine Machinists Association (IMMA), a union representing hourly workers in Waukegan, said this letter was a legal notice to employees as required by the "WARN Act," which requires prior notfication for plant closings.

Baker added that the union had not received any further information on the future plans of OMC, but he was expecting an announcement soon.