Wednesday brought surprising news. Kadey-Krogen, a near iconic yacht builder in Florida, declared Chapter 7 bankruptcy. It would be liquidated. Boats would not be completed. Deposits on boats being built would be lost.
These are not mega-yachts for oligarchs and billionaires. They are single-engine yachts that can, and do, serve as floating first or second homes for everyday millionaires, the sort of people that have been described as the “mass affluent.” It would be very easy, for instance, to make a case for choosing a used Kadey-Krogen 42 in a Florida marina over spending three or four times as much to buy a two-bedroom, two-bath condo in the same area. Ditto most of the entire East or West Coast. Sadly, tariff uncertainty was a major factor in the bankruptcy.
Six months earlier, Catalina Yachts declared bankruptcy. The event served notice that sailboats were in tough times. Millions of sailors learned on Catalina 22s and became boat owners with the thousands of Catalina 27s, 30s and 32s the company produced. I’ve owned a Catalina 32, kept it in Annapolis and loved it.
No Kleenex Will Be Provided
I am not writing this to bemoan the death of yachting. (A yacht is defined as a boat that is at least 30 feet long. Statistics suggest 95 percent of the boats Americans own are smaller.) Instead, I’m wondering if we’ve hit Peak Yacht, the moment boat ownership hits an all-time high rather than just another economic ebb tide.
While boating is a massive and highly visible industry, it has been estimated that only 12 percent of households own a boat. So the other 88 percent aren’t likely to shed tears about something they either didn’t want or couldn’t afford.
The K-Shaped Economy
It is popular to describe our economy as K-shaped, with higher income, higher wealth households constantly gaining ground, while lower income, lower wealth households relentlessly lose ground. The discussion makes it sound as though the higher income group is bulletproof. It imagines that the lower income group takes all the hits.
But it’s more soundbite than reality. Affluent families can also take hits that are devastating. Premature death, divorce, addictions and job loss are broadly distributed.
Possible Causes of Peak Yacht
There are five likely reasons the boating world is in trouble. Here’s my list:
–Crowding. Growth changes what we experience. Many of our recreational water spots have become as overcrowded and unpleasant as airports. But more dangerous. While the number of people with boats has increased, the number of people who have learned (or obey) basic “rules of the road” seems to have declined. The most recent Coast Guard statistics show a decline in boating deaths but an increase in nonfatal injuries, a possible indication that we are better protected but less careful.
–Luxuryizing. More boaters trying to share the same amount of waterfront has created opportunities for marinas to upgrade their facilities and prices. They trade their casual customers for customers seeking a luxury experience.
–Overreach in Boat Operating Expenses. A saturation number of boaters means more demand for the limited supply of people with the skills needed to keep boats afloat and running. Think diesel mechanics. It also creates opportunities for opportunistic price gauging. Boaters then have a choice: Learn a broad range of skills, pay a fortune in charges, or abandon boating.
–No Lower Rungs on the Ladder. Over the last 20 years, boat builders have put increasing emphasis on their newest, largest and most expensive boats. Entry level boats have been largely ignored. You can see this in any boating publication. The advertising dollars are spent on the newest and largest boats. The boats with the highest price tags. This does nothing to foster a population of future boat buyers.
–A Generational Sea Change. Younger, would-be boaters were raised digitally, a path that often creates illusions about the physical requirements of living in the world, getting things done and making things work. I say this as an observation, not as a judgment. But changes have consequences. This change makes younger people less likely to want to own objects that need tending and tinkering.
Portents of Doom?
Some could turn this into yet more reasons we are all doomed. I think it’s just an interesting change in a world all of us are ill-equipped to grasp.
If you’re part of the boating world, or have thought about owning a boat, please share your observations.
Related columns:
Scott Burns, “Staying Afloat And The Rush For Stuff,” 7/3/2021: https://scottburns.com/staying-afloat-and-the-rush-for-stuff/
Sources and References:
Paul Leighton, “Journal of America’s first pleasure yacht goes to auction,” 8/9/2022: https://www.yahoo.com/news/journal-americas-first-pleasure-yacht-140100284.html
Cleopatra’s Barge: https://salempl.org/wiki/index.php?title=Cleopatra%27s_Barge
Daniel Kline, “50-year-old boat building files Chapter 7 and won’t deliver,” 7/15/26: https://www.thestreet.com/retail/50-year-old-boat-builder-kadey-krogen-files-chapter-7
Veronika Bondarenko, “An iconic sailing company declares bankruptcy and shuts down after 46 years,” 1/6/2026: https://finance.yahoo.com/news/iconic-sailing-company-declares-bankruptcy-194700408.html
Yachtworld search for Kadey-Krogen yachts for sale: https://www.yachtworld.com/boats-for-sale/make-kadey-krogen/
This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.
Photos: Scott Burns, a Kadey-Krogen dockside in Longboat Key Marina, 2018
(c) Scott Burns, 2026