Story Published: Oct 24, 2009 at 7:24 AM PDT
JUNCTION CITY, Ore. -- No one is denying it: Country Coach has a battle ahead to get out of bankruptcy.
But the RV manufacturer got several votes of confidence this week -- from employees, creditors and investors who believe the company can get back on its feet -- and a federal bankruptcy judge who allowed the company to continue its bankruptcy proceedings.
After shutting down and filing for bankruptcy, Country Coach re-opened in April with high hopes and a smaller staff. As Chief Financial Officer Mark Andersen testified in a bankruptcy hearing Thursday, the company has lost almost $8 million since then.
Additionally, Country Coach has failed to meet sales and production goals set at that time. The company hoped to sell 30 coaches by now, but only 19 have been sold. Country Coach shut down production in early September.
But Country Coach's plan to emerge from bankruptcy does not depends as heavily on coach purchases, said Matt Howard, vice president of marketing.
"Between now and February, fortunately, due to the structure of the budget, we're not nearly as dependant on our customers buying coaches," he said. "Our investment group that is interested in purchasing Country Coach and assisting us out of bankruptcy has offered to purchase motor coaches that are in our inventory and essentially consign them back to us for sale, which gives us cash to operate."
Howard said it is too early to tell when Country Coach will re-open but says the plan would have the company in production every other week. He did not know how many employees would be hired back.
California-based investors are interested in buying Country Coach. According to Howard, the purchase might be completed the day the RV maker emerges from bankruptcy. Howard says that goal is mid-February.
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