Fleetwood ditching their Folding Trailer Division

[PattieAM]

5/14 - purchase has been completed.  Please check the FleetwoodRV website for the 'news' of the purchaser.  It's been purchased by an investment group.

[coach]

And the new owner is

Folding Trailer Company Acquisition Inc., (FTCA)

how creative. Wonder how long it took Blackstreet to come up with that?

[jbb]

And the new owner is

Folding Trailer Company Acquisition Inc., (FTCA)

how creative. Wonder how long it took Blackstreet to come up with that?

Spoke with my local dealer yesterday and he assured me that there would be no problems with the warranties.  He doubly assured me that his dealership would continue to service and be able to get any and all needed parts.  In fact he said their regional rep was down last week and assured all of them that there would be no problems incurred b/c of the sale.

[Done Working]

Spoke with my local dealer yesterday and he assured me that there would be no problems with the warranties.  He doubly assured me that his dealership would continue to service and be able to get any and all needed parts.  In fact he said their regional rep was down last week and assured all of them that there would be no problems incurred b/c of the sale.

I'm guessing that you are correct, but if I were thinking about buying a new trailer I would wait until (FTCA) anounces their intentions not the sales rep. The sales rep probably knows as much as we do.

[jbb]

I'm guessing that you are correct, but if I were thinking about buying a new trailer I would wait until (FTCA) anounces their intentions not the sales rep. The sales rep probably knows as much as we do.

I take comfort that it was from a regional rep and not a local salesman.  However, under warranty law they would have to honor what ever deal I strike.  The purchase agreement will require FTCA to assume all debts and liabilities.  If they did not honor the warranty of the contract signed they would be facing breach of warranty, breach of K, and fraud, misrep etc.  

The more long range problem would be service and parts beyond the warranty period.

[DrJ]

I don't know anything about how business works  but there is something I don't understand here.  If you look at the Fleetwood website news section, they say that the Folding Camper division is winning awards for their sales and quality. Why would Fleetwood want to sell such a profitable company? I think I will let the dust settle before I get my new PUP.

[fallsrider]

I had a few minutes to kill yesterday after driving to the next town to check on a job site. There's a dealer that carries Fleetwood pups not far away, so I stopped in just to look around. They keep one of every model set up, I think. The only one I didn't see set up (that I know about) was the Avalon. They had the E3, the Niagara, and several models from the small ones up to the Niagaras.

A nice young man followed me around and showed me the different models, even though I explained up front that I was just browsing and wasn't shopping. When I asked him what the word was from the Fleetwood sale, he looked surprised and said, "I'm surprised you know about that." I told him that it was all over the pup forums.

He's trying to be confident, I'm sure, and instill confidence in prospective buyers.

[Dray]

Maybe they're getting rid of the PU's because sales are down.  Maybe sales are down cause they're building crap.  My 2006 Fleetwood Timberlake breaks every time we move it.  The last trip we went on I broke the door latch AGAIN and also a hinge on the sink.  Yesterday I was moving it and bent the tongue jack...AGAIN.

[Popupper]

Per an 8-k Filing by Fleetwood this afternoon:

On May 12, 2008, the Company and the Seller completed the sale of the stock of Folding Trailers to the Stock Buyer pursuant to the Amended and Restated Stock Purchase Agreement, and Folding Trailers completed the sale of the real estate associated with the Folding Trailers operation to the Real Estate Buyer pursuant to the Real Estate Purchase Agreement.

The aggregate purchase price for the real estate and the stock combined was $10.71 million, subject to certain post-closing adjustments as set forth in the amended and restated Stock Purchase Agreement. In connection with the sale, both the Stock Buyer and the Real Estate Buyer assumed substantially all of the operating assets and liabilities of Folding Trailers, including ongoing warranty obligations but excluding pending litigation. The sale is expected to result in a loss of approximately $7.6 million after transaction costs, of which $6.3 million is attributable to the write-down of goodwill. The Company will reflect Folding Trailers as discontinued operations in the fourth quarter of fiscal 2008 and will record the loss in the same period.

The Company will use $3,664,428 of the proceeds of the sale to partially prepay the outstanding principal balance of the Company

[coach]

7,000,000 for real estate, buildings etc.
3,710,000 to be in an unprofitable folding camper business!

The license agreement is missing form the 8-k!

[mike4947]

In connection with the sale, both the Stock Buyer and the Real Estate Buyer assumed substantially all of the operating assets and liabilities of Folding Trailers, including ongoing warranty obligations but excluding pending litigation.

Which means the parent company; which said the folding trailer division was souly responsible for the Fleetwood/Coleman lawsuit settlement; is going to absorb the cost. I was wondering where that $12 million judgment was going to end up.

[Used 2B PopUPTimes]

I had a very good conversation with the President of FTCA this morning.  They have some very positive goals for FFT's customers that I'll touch on in our next issue.

[MJohn]

They weren't at liberty to tell me much, especially as a magazine publisher, but did say that it's a private equity company not currently affiliated with the RV industry.  

I would have guessed Forest River too (who is owned by Berkshire Hathaway), but it isn't.  Who ever bought FFT must be serious as I'm sure the price tag is Big.

The deal should be completed soon and we'll all know.

Dave,

    We JUST bought a Fleetwood Westlake new last Saturday!
I can't flipping beleive this! UGH!!!!!!!!!!!
I really hope whomever purchased this company is planning on keeping replacement parts on hand because I am planning on keeping this one for quite a few years 4 minimum! It would be GREAT however if Coleman would take back over their pop ups were first rate! Please keep us all informed!!!! All info is appriciated! :yikes:  :eyecrazy:  :yikes:  :eyecrazy: MJ

[Used 2B PopUPTimes]

Dave,

    We JUST bought a Fleetwood Westlake new last Saturday!
I can't flipping beleive this! UGH!!!!!!!!!!!
I really hope whomever purchased this company is planning on keeping replacement parts on hand because I am planning on keeping this one for quite a few years 4 minimum! It would be GREAT however if Coleman would take back over their pop ups were first rate! Please keep us all informed!!!! All info is appriciated! :yikes:  :eyecrazy:  :yikes:  :eyecrazy: MJ

I felt pretty good about FTCA after my conversation with their chief,  I wrote a short article about my interview with him chief for the magazine. Plus I've spoken with FFT's National Sales Mgr several times who is very positive. I'd look for good things to come.

BTW - Coleman is just a name that they license (rent out), they don't make anything.

[DrJ]

Dave, you have put out quite a teaser for the next issue...I know I can't wait :-()
When does the next issue hit the mail?