Boat manufacturer in Arlington suspends production

Citing weak retail demand for boats in the U.S., a major boat manufacturer said it would suspend production at its Arlington plant -- leaving 425 employees without regular pay for a month.

The announcement by Lake Forest, Ill.-based Brunswick Corp., which makes a number of different brands of boats, including Bayliner, Maxum and Meridian, follows last week's Chapter 11 bankruptcy filing by Olympic Boat Centers, a Redmond-based boat dealership.

"The U.S. marine industry is currently challenging, driven by an uncertain economy, high fuel prices, the housing slump and other economic factors that have affected American consumers' confidence and eroded their discretionary spending," Brunswick spokesman Daniel Kubera said in an e-mail.

Most of Brunswick's fiberglass manufacturing plants, including that in Arlington, will be suspending production during the third quarter, Kubera said. Employees directly involved in boat manufacturing will go on furlough, while other employees will report to work.

The 425 affected employees will not receive regular pay, but Brunswick will advance holiday pay if applicable and also pay for medical and dental benefits.

Olympic Boat Centers, which filed for protection in U.S. Bankruptcy Court last Thursday, sells Brunswick boats in 19 locations in Washington, California, and Canada, making it one of the company's largest dealers.

In a written statement Tuesday, Olympic Boat Centers blamed the "sluggish retail boat market" for its bankruptcy filing, under which it will be able to continue to sell boats.

In its bankruptcy filing, the company said it had assets of $10 million to $50 million and liabilities between $50 million and $100 million.