As Loan Nosedives, Boating Retailer West Marine Seeks Advice (1)

A sudden drop in the value of West Marine Inc.’s term loan is the latest warning to investors on the risks of retail as consumers pull back on discretionary spending.

The closely held retailer’s $400 million first-lien term loan due 2028 is quoted around 44 cents on the dollar, taking a roughly 40 point plunge since the beginning of the year, when it was quoted at 83.75 cents, according to data compiled by Bloomberg and people with knowledge of the matter.

The company, which operates boating supply and fishing focused stores, engaged Rothschild & Co. and Kirkland & Ellis ...