Phil McGain, president of MauiSails, has released an official statement regarding rumors involving problems between the brand and sponsored racers.
In 2015, MauiSails didn't renew the sponsorship agreements with some their top windsurfers. However, the brand has an explanation for the recent developments.
"Towards the end of last year, our sails production cycle was modified; from ordering and manufacturing sails on a monthly basis, we had to move to ordering and manufacturing on a quarterly basis, as requested by the factory in China," says McGain.
"This meant that we had to place one single order for 45% of our yearly production, and therefore, we had to finance 45% of our yearly purchase of sails from the factory at one go. Even someone who is not very knowledgeable about financial matters, can understand that such a change would put a significant, but only temporary, strain on the cash flow of any company that needs to finance suddenly 45% of its yearly production."
As a result, Phil McGain underlines that the "this strain is only temporary." When the sails get sold to the importers and paid by them, "the cash flow is back to normal, and on a long-term basis."
Despite the slight delay in the delivery of the sails, the MauiSails manager believes the iconic brand "is now in a much better financial situation. For those who might doubt it, here is hard evidence: I have just purchased Barry Spanier's shares in the company, and reimbursed over two-thirds of the bank loans of the company."
MauiSails was founded by Barry Spanier and Geoffrey Bourne, in 1999.
