NAMCO Files For Chapter 11 Protection

NAMCO, LLC, a Manchester, Connecticut-based chain retailer of pools, pool accessories and other recreational equipment, filed for chapter 11 protection in Wilmington, Delaware on March 24.  

NAMCO operates thirty seven stores in the Northeast and Mid-Atlantic states ranging in size from 11,000 to 60,000 square feet, and employs 288 people. Additionally, NAMCO has a 190,000 square foot office/distribution center, and a 40,000 square foot chemical re-packaging facility in Manchester.

According to court filings by chief restructuring officer Lee Diercks, weather and economic factors hurt sales and led to the default action.

In Diercks statement to the court, he said that “from January of 2008 through 2012, NAMCO cut $30.7 million in expenses; and its gross margin percentage grew from 41.0 percent to 51.3 percent. However, due to the combination of a very difficult economy, erratic summer weather patterns and a consistent lack of working capital, NAMCO’s top line sales dropped by 9.4 percent on a comparative store basis from 2008 to 2011.”

Diercks added that 2012 net sales for the company were $82.8 million, compared with $92.2 million for the previous fiscal year, and that thus far in 2013, January net sales were below last year by 48 percent, February sales were below last year by 42 percent, and month-to-date sales through March 20th were below last year by 32 percent overall.