The travel and leisure industry just lost another giant. Catalina Yachts, one of America’s most recognizable sailboat manufacturers, has paused operations after more than half a century in business. Founded in 1969 by Frank Butler in California, the company produced tens of thousands of sailboats ranging from eight to fifty-four feet, beloved by both casual sailors and competitive racing enthusiasts.
According to TheStreet, Catalina Yachts announced what it called a “temporary production pause” earlier this month, citing financial difficulties and the need to reorganize. In a letter to customers, company president Patrick Turner wrote that the firm was “navigating short-term financial challenges” and had chosen to pause production “rather than pushing ahead in a way that could compromise quality or consistency.”
The company now manufactures in Largo, Florida, though much of its loyal customer base remains in California, where the brand began. Turner emphasized that the pause is intended to be temporary, but the news has sent ripples through the sailing community, where Catalina’s boats have long been viewed as a cornerstone of American sailing culture.
The situation appears to have been brewing for some time. Earlier this year, in May 2025, Catalina Yachts and its parent company True North Yachts were purchased by Daedalus Yachts founder Michael Reardon in a private transaction. But by October, Reardon had been evicted from the Largo manufacturing facility for non-payment of rent. Court filings revealed that he had failed to meet payment terms agreed upon during the sale, leaving the company’s operations in limbo.
While the company insists this is a “pause” rather than a closure, the timing couldn’t be worse for the broader travel and recreation industry. Several regional airlines and tour operators have recently gone under, including Scandinavian carriers Braathens and Play Airlines, whose bankruptcies stranded thousands of travelers across Europe, and Eastern Airways in the UK, which shut down in October.
The ripple effects from those collapses mirror what’s now unfolding in the boating world. Catalina’s shutdown not only leaves current boat owners and dealers in uncertainty but also disrupts one of the few remaining American manufacturers producing mid-size sailboats at scale.
Turner said the company plans to “continue to share updates as we move through this transition and return to production with renewed strength.” For now, though, the docks will be quieter. After fifty-six years of sailing through the tides of economic change, Catalina Yachts faces perhaps its toughest storm yet — one that even the most seasoned sailors can’t easily navigate.