On Monday July 6, Kadey-Krogen Yachts, based in Portsmouth, Rhode Island, filed for Chapter 7 Bankruptcy in the U.S. Bankruptcy Court in Delaware. In a companion filing, American Tugs, which Kadey-Krogen had purchased in 2023, also filed under Chapter 7.
Unlike a Chapter 11 filing, which allows a company to continue trading while reorganizing its finances, a Chapter 7 filing calls for a court supervised liquidation of all the company’s assets in order to repay creditors. After 49 years in business as one of the U.S.’s leading makers of displacement cruising trawlers, Kadey Krogen will cease to exist.
The court papers for the filings were signed by CEO Tucker West. Founded in 1977 by Art Kadey and Jim Krogen, the builder has launched more than 700 hulls, including the ever-popular Krogen 42 of which 206 examples were made. The founders sold the company in 2006 and under West’s leadership it was bolstered financially in 2021 by new investors.
The court filings show a drastic downturn in revenue over the last three years from over $14 million in gross revenues in 2024 to just over $400,000 for the first half of 2026. The builder has only two boats on order, one that is 95% complete and one for which a deposit has been taken but the hull has not been laid up.
As of July 9, Kadey-Krogen had not issued a public statement but according to court papers owners with deposits or progress payment made will continue to own their boats. Going forward, Krogen owners will have to wait to hear how they will fare for builder support and warranty issues.
Krogen reported that the company had assets of $2.26 million against liabilities of approximately $2.8 million. The largest creditor at $1.53 million is Asia Harbor Yacht Builders in Taiwan which has built all of the Kadey Krogen Yachts over that last 49 years. Other notable creditors include the Hinckley Company, Multi-Tech Marine Services and CEO Tucker West.
