From the LA Times:
http://www.latimes.com/business/la-fi-fleetwood11-2009mar11,0,2726067.story
From the Los Angeles Times
RV maker Fleetwood files for bankruptcy
The Riverside recreational vehicle maker files for Chapter 11 bankruptcy protection and says it is in talks to sell itself as it battles to survive a prolonged sales slump.
By Martin Zimmerman
9:21 AM PDT, March 10, 2009
Fleetwood Enterprises Inc., the Riverside recreational vehicle maker, filed for Chapter 11 bankruptcy protection today and said it was in talks to sell itself as it battles to survive a prolonged sales slump.
Fleetwood said it would continue to operate while in bankruptcy proceedings and as it holds talks with potential buyers. "The company is in discussions with buyers for all or part of its business," a spokeswoman for the company said.
Fleetwood, which employs 3,000 people at 15 plants in 10 states, also said it would close its travel trailer operation, shutting down three factories and two service centers and eliminating 675 jobs. The company said it was also laying off an additional 65 workers. "Although we made substantial progress in restructuring this division and improved the product offering, current market conditions proved too severe to continue the turnaround," Chief Executive Elden L. Smith said in a statement.
Meanwhile, Smith said, "the vast majority of our suppliers and dealers should see no disruption in our business."
In its bankruptcy filing in U.S. Bankruptcy Court in Riverside, Fleetwood listed assets of $558.3 million and debts of $518 million. Its largest unsecured creditor is Bank of America Corp. Fleetwood had $23 million in cash as of Jan. 25 and said it was in talks with its lenders to secure additional financing.
The bankruptcy filing does not affect Fleetwood's foreign operations. Fleetwood, along with its rivals, has been hit by a severe slump in RV sales caused by several years of high gasoline prices and worsened by the current recession. In addition, the tight credit markets have made it tough for Fleetwood customers to get loans. In its court filings, Fleetwood said the sharp drop in sales was draining its cash and forcing it to cut back spending on equipment and research.
In November, Fleetwood, which was founded in 1950, reported a fiscal second-quarter loss of almost $57 million and said sales for the quarter fell 54% to $216.4 million. RV sales were down 63% during the quarter.
Trading in Fleetwood's stock was suspended by the New York Stock Exchange in
December after the shares lost 98% of their value during the year.
martin.zimmerman@latimes.com
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