Wells Fargo moves to repossess much of Minnesota boat rental firm’s fleet

An arm of financial giant Wells Fargo has moved to seize 269 watercraft owned by a Minnesota boat rental company after an alleged $4.5 million loan default.

Wells Fargo Commercial Distribution Finance last week sued Your Boat Club for breach of contract, asking for a state court order to repossess the majority of the company’s fleet.

The 269 boats are mostly at marinas in Minnesota — including 34 vessels in Wayzata, 24 in Nisswa and 20 each in Prior Lake and White Bear Lake.

At least 2,000 consumers have long-term boat rental agreements with Your Boat Club.

Wells Fargo claims the Minneapolis-based company owes it $4.5 million after defaulting on a loan this summer. The boats are collateral for the credit.

Luke Kujawa, Your Boat Club’s co-founder, declined to comment on the lawsuit’s specifics but said he was surprised by it and the company is trying to sort out the matter.

“We are confident we will have a resolution shortly,” he said.

Prices vary by boat size and marina location. Your Boat Club’s average annual membership costs between $5,000 and $5,500, Kujawa said.

The company has boats docked at marinas — some of which it owns — in more than 40 locations in Minnesota, Wisconsin, Florida and Illinois.

Wells Fargo and Your Boat Club inked a financing agreement in early 2023, providing credit for the acquisition of boats. In July, Wells terminated the credit agreement and called the loan, asking Your Boat Club to return the collateral, the suit said.

The bank claims the boat club has failed to pay the $4.5 million or turn over the boats. In the lawsuit, filed in Hennepin County District Court, it asked for an injunction ordering the company to surrender the watercraft.

Kujawa has a long history in the boat business. He was president of boat dealership Crystal Pierz Marine, which his family sold to Bass Pro Shops in 2009. The next year, he co-founded Your Boat Club, which has steadily grown.

Kujawa said Your Boat Club is one of the largest boat rental outfits in the Midwest. The company’s revenue for 2025 is expected to be about $26 million.