Clipper City is charting a new course.
Following a brief public auction Monday, The Clipper City tall ship was bought by J. Stephen Simms, a principal with Simms Showers LLP, on behalf of Regal Bancorp. Regal, holder of the ship?s $750,000 mortgage, put the ship up for sale when former owner John Kircher was unable to make regular payments. Simms purchased the ship for $350,000, and the auction had only one other bidder.
U.S. Marshal David Lutz started the bidding at $150,000. Simms was challenged up to $160,000 before trumping the field. Regal bought back the ship to sell privately, rather than lose more money on the investment, Simms said.
“I expected bids to go higher,” he said. “We didn?t want the boat sold for much less than thevalue of the mortgage.”
A former tour boat around the Inner Harbor, the Clipper City hosted everything from wedding receptions to high school class trips. The boat is expected to be sold on the open market by Regal, but it is uncertain when the boat will be up for sale. As for a new home, it remains uncertain whether the ship will remain local or find a new place to dock.
“We hope it stays in Baltimore,” Simms said. Others agreed.
“If Clipper City leaves Baltimore, it will be a total loss,” Kircher said. “We couldn?t operate any further,” he added. Kircher said he hoped that the new owner would “build on my [previous] success.”
Aside from the mortgage and Kircher?s back debt, it is estimated that a substantial investment must be made on the vessel before it is able to get back up to speed.
“The boat needs lots of work, at least $500,000 to $1 million in repairs,” said Lewin Usilton, former captain of Clipper City.
Clipper City was repossessed May 18, and all events were canceled as of June 1, a legal notice stated. People who made deposits did not receive refunds and became creditors, Kircher previously said.
