Monaco out of business

Harry B · Mar 3, 2009

I know this isn't Winnebago news but significant none the less. It looks like hard times has hit Monaco. I just saw this post on the Freightliner Chassis forum that indicates that Monaco is closing up shop. You can read more about it at this link: http://xrl.in/1oy3

Tom · Mar 3, 2009

Thanks for the link Harry. We have several other links here to announcements and articles about the Monaco demise. I'm left wondering what this does to/for the Monaco dealers.

Harry B · Mar 3, 2009

Thanks for moving the post Tom. I didn't quite know the right place to post the Monaco issue. Makes sense to have it where it is now.

I am not quite sure where all this is heading. A lot of dealers were selling multiple brands, so hopefully those that did have another brand to fall back on.

I read that Monaco has about $75 million in debt and their market cap. is about $1.8 million, so it looks like it is over for them. Somebody will buy the brand names. They have to worth something.

I am now glad I bought the Itasca Horizon instead of a Beaver that I had already put a deposit on. This can't help the book value of Monaco, Beaver, HR and Safari any. On the other hand this will probably depress prices of all coaches some.

John Canfield · Mar 3, 2009

Oh my gosh - what a shame!! Never in my wildest dreams did I expect Monaco to pull the plug, but until a few months ago I had no clue how financially healthy they were, either.

So the large and relatively large players left are Newmar, Winnebago, Thor, Tiffen, and was it Jayco that bought some Travel Supreme assets?

Talk about a market shakeout - this is more like a nuclear explosion :-\

Thanks for the link Harry!

Just Lou · Mar 3, 2009

John Canfield said:
So the large and relatively large players left are Newmar, Winnebago, Thor, Tiffen, and was it Jayco that bought some Travel Supreme assets?

John, do you know something about Fleetwood that you are not sharing?

Harry B · Mar 4, 2009

Here is some more info I found on another Forum. Fleetwood might be the next candidate. Looks like Thor is in good shape.

Condition of other Companies.

Thor Ind.$ 0 debt 178 mill. cash source
Fleetwood $288.95 mill debt 70.6 mill. cash source
Monaco $ 74.7 mill. debt 3 mill. cash source
Winnebago $ 0 debt $ 34 mill. cash source"

SCVJeff · Mar 4, 2009

I'm glad this was mistakenly posted in the Winnie forum because I wouldn't have looked here...

The last time I saw numbers was about 6 months ago when Winne was flush with about 300mil cash. Count them as gone as well unless they have an un-played hand. A company the size of Winnebago will burn through 34mil quickly.

We all may have collectors items before too long.

davemittan · Mar 4, 2009

Jeff -

Assuming those numbers are correct, I think a key indicator is Winnebago's lack of debt. That helps them - a lot.

Gary RV_Wizard · Mar 4, 2009

Fleetwood recently converted a lot of their debt to stock. It diluted the assets to the point where the stock is almost worthless, but it did get a lot of debt off their back. Still may not survive, though.

davemittan · Mar 4, 2009

The RV industry needs some of that bailout money - but I have to wonder if they'd find a sympathetic audience in DC.

AJHales · Mar 4, 2009

I love our Gulfstream sunvoyager, but in the way that I've always dreamt I might one day own a Porche 911 ;D , I've always fantasied I might one day own a 30' Monarco Monarch (the grander RV's tend to be a little too large IMHO for the UK

).

Now I'll have to do my research all over again (& I do love research

) BUT if this has happened to Monarch it does make you wonder who could be next. I'd hate to be the person who decides which companies (& there employees) get help (bail outs) and which do not.

I went to our local garden centre this weekend (Hurrans a family run business in Cowbridge) and found them emptying it out. It had closed 3 weeks ago. Spring is here (almost) but they just couldn't hold out any longer!

:'(

Andy

PS Any suggestions for a replacement RV fantasy??

Ned · Mar 4, 2009

If you were thinking of taking a flyer on some Monaco stock, you better hurry. It's about to be delisted.

Tom · Mar 4, 2009

The RV industry needs some of that bailout money - but I have to wonder if they'd find a sympathetic audience in DC.

The ironic thing is that the first stop on the President's first road trip was Elkhart, IN specifically talking to workers from the hard-hit RV industry.

John Canfield · Mar 4, 2009

davemittan said:
Assuming those numbers are correct, I think a key indicator is Winnebago's lack of debt. That helps them - a lot.

Yes and with almost no debt to service, that's a huge advantage. They still need revenue though or like Jeff said, they will burn through their cash.

Lou - I unintentionally left Fleetwood off of my 'survivor' list, but I would hardly consider them healthy. I'm fairly certain Newmar and Tiffen are privately held, so I have no idea of their status.

Just Lou · Mar 4, 2009

John Canfield said:
Lou - I unintentionally left Fleetwood off of my 'survivor' list, but I would hardly consider them healthy. I'm fairly certain Newmar and Tiffen are privately held, so I have no idea of their status.

Thanks John, I thought maybe I had missed an announcement of their demise. It doesn't look to be too far away.

Woody · Mar 4, 2009

davemittan said:
The RV industry needs some of that bailout money - but I have to wonder if they'd find a sympathetic audience in DC.

According to the news reports I read the laid off people in the Elkhart area will be getting some of the stimulus money. That is, unless our Governor continues to turn it down the stimulus money designated for unemployment.

Woody

SCVJeff · Mar 4, 2009

davemittan said:
Jeff -

Assuming those numbers are correct, I think a key indicator is Winnebago's lack of debt. That helps them - a lot.

It just means all they need to pay for is the groceries. And I really hope I'm wrong, but that is a dismal number to hold up a company that size.

Gary RV_Wizard · Mar 4, 2009

Tiffin or Newmar, but they may not have anything as short as you want. Winnebago probably does, though.

RLSharp · Mar 4, 2009

Woody said:
According to the news reports I read the laid off people in the Elkhart area will be getting some of the stimulus money.

Woody,

Did the news report give any details on what, if any, conditions were attached to the receipt of the stimulus money? From what I understand, the reason that some governors are considering not accepting stimulus money is that there are so many conditions and stipulations attached that they feel, that in the long run, it would not be worth it to accept the money. However, they never say what these conditions are.

Richard

KodiakRV · Mar 4, 2009

John Canfield said:
...So the large and relatively large players left are Newmar, Winnebago, Thor, Tiffen, and was it Jayco that bought some Travel Supreme assets?
...

Gulf Stream is still going, AFAIK.

Monaco out of business

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