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Rich Spending Cuts Sink Luxury Yacht Company
13 Jul
Summary
- Top 10% of US earners account for nearly 50% of spending.
- Kadey-Krogen Yachts filed for Chapter 7 bankruptcy.
- Company built luxury yachts using commercial shipbuilder standards.
Kadey-Krogen Yachts, a company established in 1976 known for its durable, long-range trawler yachts, has filed for Chapter 7 bankruptcy and plans to liquidate its assets. This action reflects a significant economic shift where reduced spending by high-income consumers has a substantial impact on luxury goods industries.
According to Moody's Analytics, the top 10% of earners in the U.S. accounted for approximately 50% of all consumer spending in the second quarter. This unprecedented concentration of spending power means that any reduction in expenditure by this demographic directly affects companies serving affluent clientele.
The struggling economy has evidently taken its toll on Kadey-Krogen, a brand that prided itself on building yachts with commercial shipbuilding standards, designed for extended voyages in challenging conditions. The company's decline suggests a broader challenge for businesses reliant on the discretionary spending of the wealthiest consumers.
