Consumer

'Economic Downturn' Cause For Boat Shop Closures

(WCCO) A family business in Minnesota that's been quite successful across the state says it just can't make it anymore. Given what they sell, they would be expected to do well in Minnesota.

Crystal-Pierz Marine sells boats, and it's closing half its stores. Some are close to the Twin Cities in Rogers, Forest Lake and St. Cloud. The other stores that are closing are in Duluth, Lake Mille Lacs and Clear Lake, Iowa.

"The market just served up a quick U-turn on us," said the company's President, Luke Kujawa. "We're trying to be proactive and really make the difficult decisions now versus later, cut some overhead and make sure we're a viable business moving forward."

He's closing three full-line locations and two seasonal locations. One hundred people will lose their jobs when the stores close. Kujawa chose to close the stores with the highest inventory and highest overhead.

He slashed sticker prices, anywhere from $4,000 to $45,000, depending on the kind of boat. Kujawa is also taking the best offers customers will give him for his boats at Crystal-Pierz Marine.

Minnesotans like Marti Rosacker might just be the reason for the slow business.

He lives in the Twin Cities and got in his fishing boat on Weaver Lake in Maple Grove Saturday afternoon. If he's anything like your average Minnesotan, he'll tell you why boating might not be big business like before. Hoping to upgrade his fishing boat to a ski boat for the family, he now plans to simply stay with it.

"It's definitely, you know, gas prices and cost of a new boat. Definitely cause you to really think about making that type of purchase," remarked Rosacker.

Kujawa said slumping sales, a sluggish economy and surging gas prices are all reasons why sales aren't accelerating at Crystal-Pierz Marine, and why he has to take such drastic measures. He hopes his family's business, with roots dating back to the mid-1950s, can stay afloat.

In Minnesota, there is about one boat for every six people who live here.

 

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