Boat retailer Crystal-Pierz Marine announced Friday it would close six of its 12 stores and lay off two-thirds of its 150 employees in response to what President Luke Kujawa called the worst market he's seen in 24 years in the business. Record oil prices and a soft economy have hurt boat sales around the country.
The workers learned Friday that their jobs would be eliminated, he said, and cuts in the parts and service departments went into effect immediately. The stores will close in a few weeks, after a liquidation sale of more than 700 units, Kujawa said, and the sales positions will be eliminated then.
"I think it was how drastic and how deep the cuts were that were probably a surprise," he said. "But we made the decisions we have to make to ensure that we're going to be in business."
Crystal-Pierz's news comes as major boat manufacturers such as Brunswick Corp. announce layoffs and production cutbacks. Kujawa said he was told nationwide sales are down as much as 40 percent from 2007.
According to the U.S. Commerce Department, orders for ships and boats in May 2008 fell 12 percent from the month before. In Minnesota, boat sales for the first quarter were down about 34 percent from 2007, Statistical Surveys Inc. reported.
Crystal-Pierz announced the cuts late Friday in a news release that blamed the "softest marine market in more than 40 years." In the release, Kujawa said, "To be blunt and honest, this really sucks!"
The affected stores are in Rogers, Forest Lake, St. Cloud, Duluth, Lake Mille Lacs and Clear Lake, Iowa.
Emma L. Carew • 612-673-7405
