Monaco Coach in Trouble!

[grantgoold]

Just read an business article that says Monaco Coach in Oregon has sent termination notices to its remaining employees!! Not a good sign at all. Some much for factory warranties! 

This makes me want to get the old bird quickly finished and stocked with food and water?

My heart goes out to all those employees and their company retirement programs!

[luvrbus]

They are all in trouble Grant I read if Country Coach does not get refinancing Well Fargo Bank is going to foreclose and Featherlite bailed on the Prevost conversion market. I don' if it is true or not but was told Featherlite paid around 4 mil in Dec to somebody to take the conversion part of their business (Vantare) I guess if you been losing 6 mil a year 4 mil is not all that bad.I have a couple of freinds that have bought new Marathons for 1/2 the listed price in the last few months    good luck

[cody]

I'm afraid that this is only the tip of the iceberg, we're all in for some difficult times in the month or possibly years ahead.

[Utahclaimjumper]

We'er haveing about the same results in the aircraft world.>>>Dan

[Nick Badame Refrig/ACC]

Hi Guy's,

Here is the artical from today.

COBURG, OR, Mar 02, 2009 (MARKET WIRE via COMTEX) -- Monaco Coach Corporation (NYSE: MNC) announced that today it has provided termination notices to the majority of its remaining workforce while it continues to seek additional financing or capital or a corporate transaction. Most of the separated employees had already been on furlough since mid-December 2008. In its notice to employees, the Company noted that absent consummation of a sale or obtaining additional financing or capital, it may ultimately be forced to shut down operations.
About Monaco Coach Corporation


Nick-

[FloridaCliff]

We have a major service center just North of us.

Besides everything else going on its especially hard on those in what are considered luxury services or businesses.

Its a shame!

Cliff

[Nick Badame Refrig/ACC]

UPDATE...


COBURG, Ore. -- As more time passes following yesterday's announcement that Monaco had laid off all but 145 workers, details are emerging as to what it means for the company. However, most say the situation is "bleak" and one media outlet said Monaco was on life support.

The Elkhart Truth reported this morning (click here) that the announcement will impact 575 workers at Indiana plants in Warsaw, Goshen and Milford as well as another 2,000 employees in Oregon.

"We just needed to reduce our expenses as we get through these unprecedented times," said Craig Wanichek, spokesman for Monaco. "We regret the impact this decision has had on our employees and the communities where we have plants. Obviously it was an extremely difficult decision."

The company's joint venture with Navistar International Corp. to build chassis in Elkhart is not affected by Monday's announcement, Wanichek said.

The company had put its workers in Indiana and Oregon on furlough since mid-December. However, McCarthy-Sessing said, the Warsaw community did not expect the operation to close because it was making lightweight towables and has received incentives that obligate it to remain in the state.

By ending the employment of most of its workers, Monaco will not have to continue paying unemployment taxes and health insurance. The company has about 145 employees remaining, Wanichek said, declining to specify whether any corporate executives were part of Monday's cuts.

The company is nearing a March 16 deadline to file its 2008 annual report with the U.S. Securities and Exchange Commission. Wanichek declined to say whether Monaco meet that deadline or will have to request an extension.

Situation described as "bleak"

In this morning's edition of the Register Guard (click here), it was reported that about 145 workers remain on the job, involved in sales, finance, accounting and management of the company, Wanichek said. Monaco's management is continuing its effort to obtain new financing or new capital or to negotiate a sale of the company, he said.

One stark measure of Monaco's woes: The company's market capitalization — the value of its outstanding stock — was $1.8 million at day's end, roughly equal to the retail price of three of its top-of-the-line Signature coaches.

The outlook for Monaco is "bleak," but reflects what's going on in the RV industry, said analyst Frank Magdlen, research director of the Robins Group in Portland.

"This is an industry that's being impacted worse than Detroit" by the recession, he said. "It's not happy news at all."



Monday's announcement may not spell the end of Monaco, however, Magdlen said.

"I think it gets resurrected one way or another," he said. "The brand ought to be worth something. ... Somebody would probably want the name."

Wanichek said company officials prepared to resume production because they thought there was an opportunity to obtain new capital or new financing last week, but it didn't happen.



In November, Monaco said it had obtained a 3½-year, $39.3 million loan from Ableco, and an $80 million revolving capital loan fund from several lenders and Bank of America. But two months later, Monaco said it was at risk of default after it violated some terms of the financing.

In early January, Monaco announced it had hired an investment banker to help it explore "strategic alternatives," including joint ventures or mergers, in an effort to improve its liquidity and maintain a strong balance sheet, after an Oklahoma hedge fund bought up 15 percent of the company stock.

SOURCE: The Register Guard and the Elkhart Truth

[Len Silva]

Well, what do you think their chances are.  They are trading at $0.06/share.  A thousand dollars will buy you almost 17,000 shares.  At least a couple of these companies will come back someday and make a few millionaires in the process.

[ktmossman]

One stark measure of Monaco's woes: The company's market capitalization — the value of its outstanding stock — was $1.8 million at day's end, roughly equal to the retail price of three of its top-of-the-line Signature coaches.

That is staggering...

[gus]

The really sad part is that Coburg is a very small town even though it is not far from Eugene which is a fair size town.

[luvrbus]

I feel for people that are losing their job but greed got Monaco into this buying out your competitors is not always the best route.These guys went on a spending spree several years back and bought some top notch RV manufactures just to close them down and now they are going to pay the price   good luck

[jackhartjr]

Clifford...very well put!
Watch for Back of America to go the same way soon.
Jack

[niles500]

LUVR - As far as Featherlite - I talked to Rick Mueller a couple weeks ago, and unless I misunderstood him, they only have left the manufacturing plant across the street from the Sanford Sales lot and are still building/selling coaches -  I don't know if things have changed since then - and their recent corporate filings do not indicate a change of ownership - they are certainly in bad shape, but since getting rid of and/or selling all their sales operations, reducing their marketing dept. to 2 people operating out of the factory, reducing their inventory, and laying off the majority of their employees, they probably have a little time left before BK - FWIW

http://sunbiz.org/scripts/cordet.exe?action=DETFIL&inq_doc_number=F06000006156&inq_came_from=NAMFWD&cor_web_names_seq_number=0000&names_name_ind=N&names_cor_number=&names_name_seq=&names_name_ind=&names_comp_name=FEATHERLITE&names_filing_type=

[niles500]

LUVR - I stand corrected - after posting I decided to look further - either I misunderstood Rick or he was not completely forthcoming - I remember him saying "We are still in production but now operating only out of the plant" - Apologies for the misinformation

http://www.fthrc.com/news_and_events/?id=114

[luvrbus]

Yea Niles Amadas needs to sell a bunch of peanut and lawnmower equipment to keep the coach line going.    good luck