Official Filing of SailNet
Recently in Post and Courier:Financial troubles sink SailNetDot-com has filed for bankruptcy, will liquidate businessSailNet, an online shopping site for boating enthusiasts that expanded quickly during the dot-com boom, has declared bankruptcy and will besold off.The North Charleston-based company and its affiliates, all operatingunder the umbrella of MarineNet Inc., sought protection from creditors earlier this week in Columbia.The once-high-flying company, which recently ceased operations, will notbe reorganized. "Everything will be liquidated," said Ivan N.Nossokoff, the company's bankruptcy attorney. SailNet listed nearly $1.4 million in debts and $211,000 in assets,mostly office equipment, inventory and unpaid invoices.The decision to close and liquidate the business "was simply a matter ofjust not having enough money to continue to operate," Nossokoff said Wednesday. "It's just that plain and simple."The bankruptcy filing shows that revenue at SailNet sank by $1.2 millionlast year, or 20 percent, to $4.7 million. Sales to date this year havetotaled slightly more than $2 million. The company listed its biggest creditor as Larry French, a Floridaresident who sold his St. Petersburg-based sail-making business toSailNet about five years ago. He is owed about $420,000, according to acourt filing. Other major creditors include National Bank of South Carolina, which isowed $350,000, and the owners of SailNet's former and current corporateoffices in Mount Pleasant and North Charleston, respectively. Thelandlords are owed a combined $131,809.The company is scheduled to meet with creditors Aug. 24 at a hearing inCharleston.SailNet sought bankruptcy protection several days after The Post andCourier reported the online retailer had stopped taking orders and that its Leeds Avenue offices had been closed for at least several weeks.Customers who said they have been overcharged or have not received theirorders have been posting complaints about the company on Internetmessage boards.Nossokoff said it's too early in the bankruptcy process to say how thecourt will handle any unfilled orders or overcharges. He also was notsure what will become of any personal information such as customers' credit card numbers that might be stored in SailNet's computer systems.The liquidation plan spells the end of what had been a promising localtechnology business.SailNet was launched in 1994 in Detroit by Sam and Cheryl Boyle, who moved the venture to the Charleston area in 1999. The next year, thecouple sold a controlling stake for an undisclosed sum to IDG Ventures,a San Francisco-based venture capital firm.Flush with cash, SailNet began to expand through acquisitions in 2000, when it bought Johnson Sales Inc., a Florida business that manufacturedsails and other boat accessories. That same year it acquiredBoston-based competitor Boatscape.com.At the same time, SailNet hired a crew of programmers, sales staff andcraftsmen. At its peak, the dot-com employed about 60 workers in theLowcountry and another 140 or so in Florida.The Boyles last week told The Post and Courier that they parted ways with the company's majority owners in December. The bankruptcy filinglisted about 30 other businesses and individuals as shareholders, whoseinvestments in the company are wiped out.SailNet said in its bankruptcy filing that John Rublaitus, who was named president and chief executive officer in January, stepped down fromthose positions Monday and is now serving as a consultant to thecompany. Nossokoff said Rublaitus was traveling Wednesday andunavailable for comment.