Thursday, July 24, 2008
WEEKEND WARRIOR BEING LIQUIDATED
ONTARIO, Calif. -- RV Industry News has learned that Weekend Warrior is now under the control of a liquidation company and that all assets are up for sale.
CMA Business Credit Services has assumed control of the company. All dealers with warranty claims pending will receive a letter within two weeks outlining procedures for filing a claim for possible reimbursement. An operator answering the phone at company headquarters would not promise that money would be available to pay all pending claims.
Weekend Warrior officials have yet to confirm the information, but dealers calling the company to inquire about warranty work are being told the company is being liquidated and that new warranty claims will not be processed.
Last month, Mark Warmouth, president of Weekend Warrior, assured the industry the factory would shut down temporarily and reopen under better financial controls.
An auction is pending to sell off all remaining assets, according to another source close to the company.
Weekend Warrior joins National RV, Okanagan RV, Alfa Leisure, Kingsley Coach and Western Recreation Vehicles as manufacturers which have shut their doors in the last eight months.
RV Industry News earlier reported that Weekend Warrior's lending partners were forcing the company's hand, said one dealer who has spoken with Warmouth and is familiar with the situation. As the firm sold off its lot inventory to raise cash, it reduced the asset line backing up the company's credit line. As a result, the lenders grabbed Weekend Warrior's operating capital to bring the credit line in line with the company's assets. The action forced the closure around the July 4 holiday.
The company never reopened from that "temporary" closure.
CMA Business Credit Services has assumed control of the company. All dealers with warranty claims pending will receive a letter within two weeks outlining procedures for filing a claim for possible reimbursement. An operator answering the phone at company headquarters would not promise that money would be available to pay all pending claims.
Weekend Warrior officials have yet to confirm the information, but dealers calling the company to inquire about warranty work are being told the company is being liquidated and that new warranty claims will not be processed.
Last month, Mark Warmouth, president of Weekend Warrior, assured the industry the factory would shut down temporarily and reopen under better financial controls.
An auction is pending to sell off all remaining assets, according to another source close to the company.
Weekend Warrior joins National RV, Okanagan RV, Alfa Leisure, Kingsley Coach and Western Recreation Vehicles as manufacturers which have shut their doors in the last eight months.
RV Industry News earlier reported that Weekend Warrior's lending partners were forcing the company's hand, said one dealer who has spoken with Warmouth and is familiar with the situation. As the firm sold off its lot inventory to raise cash, it reduced the asset line backing up the company's credit line. As a result, the lenders grabbed Weekend Warrior's operating capital to bring the credit line in line with the company's assets. The action forced the closure around the July 4 holiday.
The company never reopened from that "temporary" closure.
