Catalina Yachts announces production pause
Posted by MWorld993@reddit | sailing | View on Reddit | 110 comments
Just posted to FB by Patrick Turner, President, Catalina Yachts. It hasn’t yet been posted to the news feed on their website but us on their FB page.
The message is much longer but paragraph 2 sums it up: “We have initiated a temporary production pause while we reorganize key areas of our operation. Like many manufacturers in today’s environment, we are navigating short-term financial challenges. Rather than pushing ahead in a way that could compromise quality or consistency, we have chosen to take a responsible pause while we finalize the support needed to move forward stronger.”
2dwind@reddit
Wow. Just wow. Ordered my Cat in December and still waiting… I’m a very patient person…
MWorld993@reddit (OP)
Have you heard anything from Catalina or your broker? Who did you use as a broker?
ArtVandelayII@reddit
Elan is doing the same thing. Hanse was also purchased and immediately cut 200 jobs. I’m starting to wonder if any “affordable” monohull makers will still exist in 10 years. Seems like our only options might end up being Beneteau/Jenneau and Bavaria. Take one of those or step up to a much more expensive semi-custom builder.
Of course “affordable” isn’t really true of any of them anymore. A new Catalina 315 is now $300k, in 2001 a new Catalina 30 MkIII was what, $75kish? Which would be around $130k in today’s dollars?
I’m sure there’s a reason no one makes boats in that price range anymore, but I do wonder what those of us on the used market will have to choose from in 15 years if the only new boats getting produced are >40’ $500k+ yachts. I guess we’ll still have to refit boats from the 80s or older…
icecon@reddit
Doomsaying. You can buy a brand new TES 246 Versus from Poland for about 75K and it's the best/biggest trailerable-without-a-permit boat. In other words, it's what most people would do well to buy unless they want to cruise on a 42-45ft, in which case a lightly used Elan is pretty affordable.
I went to the boat show last week and I could help but think most these companies are making the same product with minor variations. THAT is why they are struggling.
Why are there no new boats with junk rigs? Why no amphibious boats? (yes I know about the luxury Iguana boats) Why no twin keels? Why no roomy trimarans other than the iffy-quality Neels? Why no copper-nickel hulled boats that would never need to be painted?
The used market is flooded with fin keel GRP monohulls as it is, these companies need to shift strategy by supplying reasonably affordable DIFFERENT kinds of boats.
505ismagic@reddit
Charter economics powers most of the the new boat market, and the charter market has weird demands. But it allows for the financing of new boats at a lower price point than the semi custom boats.
One of the mysteries to me is why there is not more demand for joinery that will last a few seasons.
One of the big issues with boat production is that low volumes mean less automation, and much more skilled labor. If you are producing tens or hundreds of thousands of something, you can get most of the labor out of the cost. When you are producing 10, or 20 a year, labor becomes a huge part of the cost.
Weird1Intrepid@reddit
Fully agree with you there. It's like the market collectively decided that the only boats we should have are fin keel bermuda sloops with an unsafe amount of interior room and the worst ride imaginable, made from the cheapest materials they can get away with.
icecon@reddit
Absolutely. Why y'all don't sell us any yawls.
lucidguppy@reddit
We'll all be sailing dinghies soon.
phaederus@reddit
At least sailors don't have to deal with the regulatory pressures that pilots do... yet... If you want to get an idea of what sailing will be like in 20 years, just have a look at general aviation today :/
outworlder@reddit
Student pilot here. Many of those regulations have to do with the fact that your time to deal with problems is measured in minutes and you are sharing airspace with other aircraft at hundreds of miles an hour. Oh, and there's often people under you as well. Then there's medical; if you have a serious medical issue, and you are the only pilot, guess what's going to happen.
There's a lot to be said about the FAA and how they deal with issues such as mental health. But many of those regulations have been written in blood.
I don't expect sailing to have to deal with the same type of issues.
In both cases - and more relevant to the thread - economic pressures are wreaking havoc. GA had a post war boom, and has been declining ever since. Many manufacturers went out of business. Parts can be really difficult to source for some aircraft types. Aircraft prices are soaring (pun intended) way past inflation.
kdjfsk@reddit
Those expensive boats (and thus all boats) will just experience faster deflation. Economy get tougher, fewer people have time, let alone have money to think they get do boating. Fiberglass lasts a long time. The supply is getting bigger, while demand is decreasing. That can only mean cheaper boats on the used market.
bubblesups@reddit
The willshrink if these "breaks" are lengthy. That will push prices up. Which will justify price jumps for manufacturers. Boats will get considerably more expensive the longer this goes with more companies halting business.
kdjfsk@reddit
My boat is 51 years old. The supply is only going up.
...unless maybe that break is another 30 or 40 years or something to the point that 70's and 80's boats finally find the bitter end.
New supply might be outpaced new demand, but the new boat market is a small slice of the boat market. The old boats are still here, so the totally inventory of boats on earth is rising. Yea, it might suck for millionaires who want new boats with warranties because they cant be bothered to lay glass or use a multimeter and dont know how, who cares? Those boats will still depreciate regardless, simply due to the fact they cost money to store and their condition worsens over time in storage.
Boats experience the most deflation in resale value of about anything on earth. Thats not a bad thing, and its never going to change. the way to win that game is pay pennies on the dollar for the intrinsic value. unless we have another pandemic or something there will always be cheap boats. Okay, maybe if pigs fly, we get an altruistic government that restores wages and the American dream then maybe Burger King Cashiers will be out racing their new yachts as a hobby, but i dont see it happening.
jawisi@reddit
Greed is the deadliest of the seven.
ballsack-vinaigrette@reddit
Boomers are aging out of the market and GenX/younger gens aren't as into sailing. The sailboar market is going to have a big problem but it's not going to be the supply.
Weird1Intrepid@reddit
I would literally never ever consider a new build unless I won the lottery or something. And even then, I've got a long list of existing boats I'd much rather have now, than wait however many years with my name on a list and a new model coming out before I even see the damn thing lol.
No shame on those who can afford to buy new, of course, but there's so much out there on the used market, and I'm the type who's happy to do all the work myself unless I need to hire a crane or something.
pbmonster@reddit
I listened to an interview with a power boat guy recently, he said that for new small boats (fishing boats and wake-sport boats), you basically don't compete on price anymore. The $100k market is small and dying. The shipyards now actually all compete on features in the $300k market.
Maybe sailing is the same. The people who could spend $130k on a new yacht also can spend $300k. But when they do, they want to see features for it.
hellowiththepudding@reddit
Yep, boats in the 30-50' range have outpaced inflation SIGNIFICANTLY in the last 30 years.
Admirable-Horse-4681@reddit
My friend has owned three Catalinas They had a big presence at the Annapolis Sailboat Show last year(2024); I didn’t attend this year, so don’t know if they downsized after being bought out.
MWorld993@reddit (OP)
I was at this year’s boat show. Same footprint as last year: 356, 426, 446. When I spoke with the CYS sales reps they said delivery on a new 356 was 12 months. No mention of any pause in production.
Free_Range_Lobster@reddit
Reps are the last ones to know anything and the first to get shitcanned.
Glenbard@reddit
They had three models there this year: the 36, 42, and I think a 47 (can’t remember the exact length of the third). They had moved all the way to a back dock off of J2.
On a positive note, the new 42 is insane! In-mast furling, now thrusters, tons of port lights, great Yanmar diesel (I think he said it was 30hp). It was hands-down better than the Jeanneau of similar length.
futurebigconcept@reddit
Are you referring to the 426? A 42-ft boat doesn't seem small to me. The 426 has a Yanmar 4JH at 57hp. A 30hp engine would be more appropriate for a 30-ft boat.
Glenbard@reddit
Yes. That’s the boat. I was interested in showing my wife the Catalina they had in the mid-30 ft range and the one in the low 40s as very strong potentials for our retirement boat. It was like a world wind bring there as there were several boats on our list. I wanted to let her see what we could get at different price points. We currently have an old 26 Hunter which is hardly an example and my wife has a hard time visualizing things she can see and feel. I should have written stuff down but was more interested in her seeing them… she’s the ultimate decider… and holds 51% of the vote on major purchases (which was a great early-marriage decision 17 years ago as I was not very good with money).
MWorld993@reddit (OP)
Catalina didn’t move this year. This year was my 3rd Annapolis Sailboat Show and Catalina was at J2 all three years. I have a photo of me standing in front of the 355 in 2023 and the 356 last year with Latitude 38 in the background.
Glenbard@reddit
Cool. This year the stars aligned and I happened to be working in DC instead of my normal place. It had been at least a decade since last I went… and back then I was interested in looking at all the boats I’d never be able to afford.
MongolianCluster@reddit
I sailed on a 425 last year. I couldn't believe the beam on that thing. Huge cockpit. The interior was really well designed. I agree about the Jeanneau.
Ok_Junket_8251@reddit
Catalina seems to be toast - what a sad end to a great company. Designer Gerry Douglas and Sharon Day who succeeded founder Frank Butler as President are both suing Catalina for at least $1,000,000 each over a bonus that was never paid out, employees claiming no pay in five weeks, all with the current company president and new owner sitting at Annapolis all weekend selling boats that won't be built. I wonder how many deposits they needed to bring home to be able to make payroll? Again, a sad end. I'm just glad Frank didn't have to watch it happen.
icecon@reddit
Are you sure about this? It seems like Catalina is the one suing them. https://dockets.justia.com/docket/california/cacdce/2:2025cv04090/969406
Eddie_shoes@reddit
I have no idea what kind of position they were in a few months ago, but the fact that they just got bought out and then decided to pause production is slightly worrying… I wonder if they will suffer a similar fate to companies purchased by VCs. I hope not, I love Catalina Yachts…
MonsieurLeDrole@reddit
Nothing gets better with VCs. Can you think of a single restaurant that improved food quality after a VC buyout? They're vampires.
Just_Another_Pilot@reddit
Standard playbook of strip mining them of anything with value, loading them up with bad debt, then letting them go bankrupt.
Such a shitty parasitic industry.
bored_android_user@reddit
Is there a quick eli5 version of how that makes a vc money?
arealcyclops@reddit
You own a lemonade stand that makes $100/day. I buy your stand for $5k. I get a bank loan through the business for $5k. I give myself a $5k dividend. Now, I have no risk of the business fails and lots of upside if it successfully pays off the debt.
Carribean-Diver@reddit
You forgot the part where you sell the physical stand and its assets to yourself, and then make the lemonade business lease them back from you in perpetuity. When the lemonade business inevitably goes bankrupt, you part out the assets while the defunct lemonade business' creditors are left with nothing to collect.
MonsieurLeDrole@reddit
Often loading them up with bad debt is step one. Companies like Toys R US were instantly burdened with billions in debt, effectively paying for their own buyout. There's bunch of short corporate histories on a YouTube channel called Company Man, and a common thread is VCs doing exactly this and ruining products you love.
https://www.youtube.com/@companyman114
RoyalRenn@reddit
Still, someone has to be dumb enough to buy the debt up for a company with dismal prospects that may default in that situation. Those are the real suckers.
If a company takes over Toys “R” Us, sells the real estate in a lease buyback situation, and then goes to the market to sell non-collateralized debt, who are these investors buying the debt?
one_hump_camel@reddit
Don't worry for them, those investors are also going to sell off that debt to anyone who will buy, their mothers if they're willing. And if nobody is buying, they are too big to fail and the government will use tax money to take on the 'bad debt'.
Famous-Opposite8958@reddit
Once upon a time there was this concept among lenders called “due diligence”.
ppitm@reddit
Buying a company with its own money shouldn't even be legal.
MonsieurLeDrole@reddit
That's one of those things that sounds good when you say it, but when you think about implementation, it's really hard, because who can say where and why money comes from. You got two companies, they merge, the debt combines.
What you're really saying is, "It should be illegal to borrow money to buy stock" and maybe at some limit, that's true, but I don't think margin buys can be completely stopped.
I suppose the answer could be that the government has to approve mergers.... which is already the case sometimes and it's own kinda problem. But the fluidity of money is generally a good.
This is a question I'd like to see answered by somebody like Mark Carney.
ppitm@reddit
Wouldn't you control it by making it illegal to lend money to someone whose loan collateral is a company they don't control or intend to acquire? The com
Potential4752@reddit
The companies don’t go bankrupt because they were bought by VC, they get bought by VC because they are going bankrupt.
Jewnadian@reddit
Not at all true, many businesses are fully capable of turning a profit more or less indefinitely but aren't capable of fighting off a hostile buyout. That's what PE does, they use a huge pot of money to muscle into a solid company and then gut it and pull out all the value to repeat the cycle.
Potential4752@reddit
That would only happen if they were making a tiny profit relative to their assets.
Jewnadian@reddit
So exactly what I said, a company can make a healthy sustainable profit and still fall to a hostile takeover that then destroys the company to enrich the vulture capitalist. The thing to remember here is that we created this system and we can change it. Owning other people used to be a totally valid business model until we decided as a society that it wasn't anymore. We could do the same thing to parasitical PE funds as well. If we decide that healthy, sustainable businesses making things the world needs ads more important than a finance bro buying another yacht.
Potential4752@reddit
Destroying a company making a good profit benefits no one.
A company that is making 1 million dollars profit with 1 billion dollars in assets may be “sustainable”, but it is not a good profit and is really a waste of money when you consider the opportunity cost. It doesn’t benefit our society to keep it running.
OutlyingPlasma@reddit
The good news is they just did this with EA. The largest leveraged buyout in history. I'm sure dumping a bunch of debt on EA will making gaming and EA's already sTeLlAr reputation better.
rokosbasilica@reddit
Just a small clarification, but you mean Private Equity, not venture capital. VC is for brand new businesses, PE is for existing businesses.
Decent-Finish-2585@reddit
VC don’t do buyouts, they do early stage investment. PE is what you are thinking of.
seamus_mc@reddit
Look what happened to west marine
infield_fly_rule@reddit
A T-shirt shop that also sells some log grade stainless parts and fishing gear in the back.
OutlyingPlasma@reddit
t-shirt shop? I though it was a Yeti shop with a few clothes?
RoyalRenn@reddit
Sounds like they were bought by PE, not VC. VC is typically for a startup. PE is for operating companies.
The investors aren't going to want to lose their $ for investments, so something else must be happening. Firms don't just pay premiums for companines and them close the doors a few months later. Shuttering means that the company was in worse financial shape than initially thought and that the PE firm needs an additional capital call to cover expenses. Or that they are pulling the IP into one of their other brands and are consolidating manufacturing and SG&A into one location, which is typical, just like in any buyout.
Much of the value PE creates for itself is rolling up several companies into one larger company, and then exiting it. There are efficiency gains if done well, and the market pays a premium for a company with, say, gross income over $250M vs. a company with gross income of only $50M.
I have no idea if the firm is planning on owning and growing the business long term, or just doing a financial consolidation, strenghten the balance sheet, and flip. Both exist in the market.
It's hard to say w/o being on the inside.
MackenzieRaveup@reddit
Or that market conditions have deteriorated in the interim.
hellowiththepudding@reddit
Turns out $3-500K+ yachts are not flying off the shelf.
pab_guy@reddit
I mean, if you are operating your company based on a mission that isn't just pure profit, then there's alpha to be gained and VC's are going to look for those opportunities.
But selling your company to a VC or even a conglomerate is basically acting against any mission, so the owners made their choice IMO.
Then again there is value in brand loyalty, and I would think a name like Catalina would want to preserve that. Hopefully that argument holds water with mgmt.
george_graves@reddit
"then there's alpha to be gained and"
alpha?
Big_Poppa_Steve@reddit
Gains over and above what you could get from investing in different assets with a similar risk profile. Essentially "free money."
george_graves@reddit
ok finance bro - lol
piense@reddit
Yeahhh, I’m still annoyed Olive Garden started microwaving most things :/ good breadsticks don’t make up for rubbery chicken.
kdjfsk@reddit
They had announced previously that part of their plans were to consolidate some of the operations, facilities, supply requisition, etc. It makes sense to pause things and play musical chairs putting the best workers in the best facilities using better materials bought at best bulk prices.
That said, a concerning post below states some employees haven't/been paid for 2 months. that part is a major red flag, regardless what they are doing.
PanickyFool@reddit
VC do not purchase companies, they specifically are limited in fund structures to take no more than 20%.
Private Equity does.
Eddie_shoes@reddit
Total brain fart, yes
nickelchrome@reddit
The enshittification of Catalina would crush me
deleted_by_reddit@reddit
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sailing-ModTeam@reddit
This post is not related to sailing so it has been removed.
No politics on r/sailing. Not ever.
deleted_by_reddit@reddit
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sailing-ModTeam@reddit
This post is not related to sailing so it has been removed.
t53ix35@reddit
Think tariff threat is making it harder to do business in an atmosphere of total market chaos? Also, they are manufacturers, they actually make boats, they don’t just shove money around to make money. Must not be very good VCs because they bought a boat building company as an investment- there must’ve been a thousand more potentially successful businesses the could have bought.
deleted_by_reddit@reddit
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sailing-ModTeam@reddit
This post is not related to sailing so it has been removed.
bubblesups@reddit
Greed. Margins aren't big enough for the new owners.
ToasterBath4613@reddit
I know it’s slightly tangential but I was reading the WARN notices yesterday for my home state (FL) and noticed Boston Whaler are closing their production facility in Flagler Beach entirely. 272 employees affected. Are there other US boat manufacturers making drastic changes??
deleted_by_reddit@reddit
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sailing-ModTeam@reddit
This post is not related to sailing so it has been removed.
caeru1ean@reddit
I met a guy in the airport yesterday who owns a 2020 Catalina and has had bulkhead separation issues. Catalina said he used the boat too hard...
futurebigconcept@reddit
Like, in the waves?
WeAreOnTheFire@reddit
There might have been wind involved also
MWorld993@reddit (OP)
I hope not. In the past 6 months, Michael Reardon and Deadalus have purchased Catalina/True North, Tartan, and AMP Carbon Spars. That is a heavy investment and of course they aren’t going into it wanting to fail. On the other hand, I own an O’Day 25 and for O’Day there was a similar story about being added to a conglomerate with other manufacturers and that didn’t end well for O’Day.
fuckin_atodaso@reddit
I didn't realize they bought Tartan, that is a bummer. Not that I'll ever be afford to buy a brand new one, so maybe that is worry for me when I'm in my 70s.
hellowiththepudding@reddit
That is a super bummer. RIP to the last great lakes sailboat manufacturer. I'm sure they will be consolidating/closing down lines. Only reason you would buy competing companies.
fuckin_atodaso@reddit
Yeah, I sail on Lake Erie so have a soft spot for them. Plus, my friends that have them make me fairly jealous whenever I'm on one.
Infamous-Adeptness71@reddit
Ripple effect. Old sailors aren't doing enough to keep the sport going. Too many of them are crotchety and cliquish. National sailing orgs are too focused on niche foiling and very niche outreach stuff. Less sailors = smaller and smaller market.
Eddie_shoes@reddit
I also think so much of sailing has been pushed to racing, just in general. Every time someone asks about getting into sailing, people mention walking docks and asking to join a race boat. The last place I think 99% of beginners want to be is on a boat with a bunch of people yelling at you while you get wet and heel over. What's wrong with just pleasure sailing?
millijuna@reddit
I do my part. I’ve taken more than a few newbies out on my E27 and showed them a good cruising time. A couple of places I can get to, drop the hook, have lunch, and be back at dockside by happy hour. Also discuss how it can actually be done relatively inexpensively if you do it like us with classic plastic, some friends, and do most of the work yourself.
MWorld993@reddit (OP)
As u/ArtVandalayII noted, there aren’t affordable new sailboats anymore. That doesn’t help with getting younger folks on sailboats.
Infamous-Adeptness71@reddit
Not sure about that. Brand new? No. But you can sail for a couple of years for the price of a new Ford F150.
CleanSurf@reddit
100% this. People don't want to have to be bullied to learn and grow into a sport. When's the last time any one actually walked the dock with a six pack of beer and a smile and had success getting their start?
Infamous-Adeptness71@reddit
I did.
But I have no illusions that it's the right way to proceed, if the sport is going to survive and expand (and simply accommodate those who want to participate).
TeaTimeInsanity@reddit
I did 3 years ago, wasn't yelled at and still with the same crew. It happens.
dasblinkinlites@reddit
Amen! We’re just getting started and it’s been a struggle to find the right people to give the right advice. We run into all sorts of people who have the best intentions but freak us out.
Infamous-Adeptness71@reddit
"ad hoc" is how I would describe it. I've been gradually breaking into this sport for 6 years. Bizarre experience at times.
Infamous-Adeptness71@reddit
The idea that some guy with wife and kid at home is disposed to randomly show up at a marina on Saturday morning "with a 12 pack" and walk the docks in search of crew opportunity tells you everything you need to know about the bar of entry into the sailing community.
Don't get me wrong, some do this. I did. And, it works as a way to guarantee that the people who do sail are persistent people. However, the numbers appear to be dwindling, so the aperture really needs to be opened up and include a more organized and more gentle, gradual introduction for interested adults (of which I believe there are many more than we expect).
HawaiiClipper@reddit
as a brand new sailor I've run into this A LOT. some people almost make it seem like you can't get into it at all unless you work your way up crewing race boats.
ArtVandelayII@reddit
Accurate. I quit my local sailing club after one year because I simply don’t care about racing. Decided I’d rather spend my money chartering small boats whenever I can just so I can get out on the water and enjoy peace and quiet without someone yelling at me to trim a sail by 5mm’s.
millijuna@reddit
I’ll be honest, I didn’t realize they were still in business. I figured they were one of the many long ago manufacturers like Ericson.
MoosePenny@reddit
Welp, that explains why I can’t get any parts from them. Dang.
fastfurlong@reddit
Canary in the coal mine
Healthy-Ad-3369@reddit
wild to see them at Annapolis, and there was no signs of pause. but i guess you have to put on a good front.
SuperBrett9@reddit
Maybe, with everything doing on with the economy and tariffs, they hoped to get to the boat show and secure some deposits to keep the lights on and the sales just were not there.
MWorld993@reddit (OP)
Most or all of the folks there were broker reps from Chesapeake Yacht Sales and some broker from NJ that I can’t remember the name. Chances are that even if the brokers were aware of the pause, the reps at the show were not.
PhillySpecialist@reddit
RIP to a real one
markforephoto@reddit
Damn I own a cat 30 and my uncle was looking at a new 356. Let’s hope they don’t close
Significant_Tie_3994@reddit
Of course, the writing was on the wall when the PE tender got accepted by the Board.
ez_as_31416@reddit
Another canary in the coal mine?
With Benneteau announcing dismal financials, and some posting about a recent slump in prices for used sailboats, we may be seeing a serious slump in the industry. Especially in the mid market. The superyachts, of course, will cointinue to thrive.
spinozasrobot@reddit
Well, I guess we know the date by which any boats purchased afterward are of questionable quality.
hypnotoad23@reddit
Reardon kills another brand…
MandatoryMatchmaker@reddit
Posted yesterday 10/14/2025 by Lisa Cayce on Catalina Parts and Pieces: I personally worked at Catalina Yachts until today when we were laid off. The new owner, Michael Reardon, has not paid our wages for the past 2 months and our insurance was cancelled. We had a meeting today and hopefully we will be back in 2 weeks when the owner pays us and the vendors. Hoping that this is a temporary issue and we will be back to producing the best yachts in the industry. This falls on Reardon himself and does not reflect on management. I am only stating what I know for a fact and will not repeat rumors.
Candygramformrmongo@reddit
Sounds rather ominous. Stand by for RIFs and other cost cutting.