National RV shuts Perris operation; 600-plus lose jobs
By JOSH BROWN
The Press-Enterprise
After six years of financial losses, National RV Holdings Inc. on Friday shut down its headquarters and main production facility in Perris and laid off almost its entire work force - more than 600 employees.
The closure follows a year of turmoil during which the company was forced to sell both its most profitable line of RVs and its land and buildings in Perris to stay in business.
"Our board of directors decided last night to shutter National RV Holdings," Jonathan Corn, the company's vice president and general counsel, said in an interview at National RV's headquarters. "At this time, it is unknown whether this will be temporary or permanent."
Corn said the company shut down some operations on Monday and let some workers go temporarily.
National RV has lost money every year since 2002, a total of more than $80 million. In October, the company's stock was delisted from the New York Stock Exchange after its share price for a month fell below $1, the bourse's trading threshold. In its most recent quarter, the company lost $8 million after sales fell 42 percent.
The company's fate was still uncertain Friday. Kathryn Thompson, an RV industry analyst with Avondale Partners LLC in Nashville, said it's unlikely that another company will want to buy National RV.
There's a chance that Fleetwood or another company like Thor could just buy certain brands off them," Thompson said. "But at the end of the day, it's too much of a liability to buy the whole company."
She said the news that National RV was closing was not altogether surprising.
"What I've been saying for about four years is that if there's a company that could just go out of business, it's National RV," Thompson said. "It's a cash-flow issue for them."
National RV's problems are not unique in the RV industry, which has suffered in recent years because of rising gasoline prices and a glut of RVs on the market driving down demand.
Across the industry, motor-home sales for the first nine months of 2007 are down 5.3 percent over the previous year, according to Grand Rapids, Mich.-based Statistical Surveys, which tracks the RV industry.
In an attempt to turn around its fortunes, National RV in February sold its luxury motor home subsidiary Country Coach Inc. to a group led by the manufacturer's largest shareholder for $38.75 million
The move was part of a continuing attempt to turn around the financially struggling company.
The deal left National RV debt-free but without its only profitable asset.
Then in April, the company's board of directors voted to sell its 607,000-square-foot complex and land and lease back the buildings for 10 years with two five-year renewal options.
Four months later, the company's chief executive, Brad Albrechtsen, who led the company for six years, stepped down, and David Humphreys, the company's recently appointed chairman, was named CEO.
Employees who arrived at the Perris production plant Friday morning were given notices announcing the layoffs.
The letters said the layoff is expected to be permanent and the entire site will be closing. Typically, a company must give a 60-day notice of an impending layoff, but the letter said since National RV was actively seeking capital during that time period, a layoff notice would have hurt its chances of getting funding.
By noon, dozens of workers waited outside the main office to pick up their paychecks and layoff notices, huddling under an awning to stay out of the rain.
"You know it's coming, but it's still surprising," said Rigo Rincon, who had worked on National RV's assembly line for nine years. "I got the feeling something was going to happen three months ago."
The 34-year-old Moreno Valley resident is optimistic about his job prospects.
"I'm healthy. I speak English. I'm not worried," he said. "I'll go on unemployment for a little while, but then I'll look for another job. I can't just sit around. I have a family."
Sergio Alvarez, 38, of Perris, worked for National RV for 12 years. The father of two said he has apprehensions about entering the job market after so long.
"There are going to be a lot of people unemployed looking for jobs," he said. "It's really difficult. It's almost Christmastime, and we get this notice."
Reach staff writer Josh Brown at 909-806-3074 or jbrown@PE.com
Find thousands of Bilingual jobs at LatPro.com.
The Press-Enterprise
After six years of financial losses, National RV Holdings Inc. on Friday shut down its headquarters and main production facility in Perris and laid off almost its entire work force - more than 600 employees.
The closure follows a year of turmoil during which the company was forced to sell both its most profitable line of RVs and its land and buildings in Perris to stay in business.
"Our board of directors decided last night to shutter National RV Holdings," Jonathan Corn, the company's vice president and general counsel, said in an interview at National RV's headquarters. "At this time, it is unknown whether this will be temporary or permanent."
Corn said the company shut down some operations on Monday and let some workers go temporarily.
National RV has lost money every year since 2002, a total of more than $80 million. In October, the company's stock was delisted from the New York Stock Exchange after its share price for a month fell below $1, the bourse's trading threshold. In its most recent quarter, the company lost $8 million after sales fell 42 percent.
The company's fate was still uncertain Friday. Kathryn Thompson, an RV industry analyst with Avondale Partners LLC in Nashville, said it's unlikely that another company will want to buy National RV.
There's a chance that Fleetwood or another company like Thor could just buy certain brands off them," Thompson said. "But at the end of the day, it's too much of a liability to buy the whole company."
She said the news that National RV was closing was not altogether surprising.
"What I've been saying for about four years is that if there's a company that could just go out of business, it's National RV," Thompson said. "It's a cash-flow issue for them."
National RV's problems are not unique in the RV industry, which has suffered in recent years because of rising gasoline prices and a glut of RVs on the market driving down demand.
Across the industry, motor-home sales for the first nine months of 2007 are down 5.3 percent over the previous year, according to Grand Rapids, Mich.-based Statistical Surveys, which tracks the RV industry.
In an attempt to turn around its fortunes, National RV in February sold its luxury motor home subsidiary Country Coach Inc. to a group led by the manufacturer's largest shareholder for $38.75 million
The move was part of a continuing attempt to turn around the financially struggling company.
The deal left National RV debt-free but without its only profitable asset.
Then in April, the company's board of directors voted to sell its 607,000-square-foot complex and land and lease back the buildings for 10 years with two five-year renewal options.
Four months later, the company's chief executive, Brad Albrechtsen, who led the company for six years, stepped down, and David Humphreys, the company's recently appointed chairman, was named CEO.
Employees who arrived at the Perris production plant Friday morning were given notices announcing the layoffs.
The letters said the layoff is expected to be permanent and the entire site will be closing. Typically, a company must give a 60-day notice of an impending layoff, but the letter said since National RV was actively seeking capital during that time period, a layoff notice would have hurt its chances of getting funding.
By noon, dozens of workers waited outside the main office to pick up their paychecks and layoff notices, huddling under an awning to stay out of the rain.
"You know it's coming, but it's still surprising," said Rigo Rincon, who had worked on National RV's assembly line for nine years. "I got the feeling something was going to happen three months ago."
The 34-year-old Moreno Valley resident is optimistic about his job prospects.
"I'm healthy. I speak English. I'm not worried," he said. "I'll go on unemployment for a little while, but then I'll look for another job. I can't just sit around. I have a family."
Sergio Alvarez, 38, of Perris, worked for National RV for 12 years. The father of two said he has apprehensions about entering the job market after so long.
"There are going to be a lot of people unemployed looking for jobs," he said. "It's really difficult. It's almost Christmastime, and we get this notice."
Reach staff writer Josh Brown at 909-806-3074 or jbrown@PE.com
Find thousands of Bilingual jobs at LatPro.com.
Labels: layoffs, National RV
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