Malibu Boats Inc.
04/11/2024 | Press release | Distributed by Public on 04/11/2024 15:19
Material Event - Form 8-K
Item 8.01 Other Events.
On April 10, 2024, fifteen dealerships operated under common control of Tommy's Boats ("Tommy's Boats") filed a complaint against Malibu Boats, Inc. (the "Company") and its subsidiary Malibu Boats, LLC ("Boats LLC" and together with the Company, "Malibu Boats") in the United States District Court for the Eastern District of Tennessee (Case 3:24-cv-00166). The complaint alleges that Malibu Boats breached its obligations under dealership agreements with Tommy's Boats, quantum meruit, unjust enrichment, promissory estoppel and intentional and negligent misrepresentations relating to the parties' commercial relationship. Tommy's Boats is seeking monetary damages. Malibu Boats intends to vigorously defend against claims alleged by Tommy's Boats.
Sales to locations under common control of Tommy's Boats represented approximately 9.4%, 10.7% and 4.0% of the Company's consolidated net sales for fiscal year 2022, fiscal year 2023 and the first six months of fiscal year 2024, respectively, including approximately 23.3% and 10.1% of consolidated sales in fiscal year 2023 and the first six months of fiscal year 2024, respectively, for the Company's Malibu segment. The Company does not currently have dealership agreements in effect with Tommy's Boats. The Company is actively engaged with its dealer network to mitigate any marketplace disruption and to provide a strong dealer partner in each of the Company's markets served by Tommy's Boats. Boats LLC has a repurchase agreement with M&T Bank, the floor financing lender to Tommy's Boats, with respect to approximately $5.2 million of Malibu/Axis boats based on recent reporting by M&T Bank.