Lee Litchfield Blog

02/05: Country Coach auction

Category: General

The long wait for Country Coach's fate is coming to an end. While they had been hoping for a white knight to come to their rescue, it didn't happen. The bank cried uncle and a bankruptcy judge agreed several months ago to let them liquidate the company.

Everything from trash cans to nearly million dollar coaches were auctioned today. I spent nearly 8 hours online bidding, but mostly watching in amazement. Some lots were purchased for more than retail, while others were pennies on the dollar.

In the end, I purchased a couple of nearly complete coaches, an Affinity and a Magna. I also bought a 20K generator, power sun visors, day/night shades, cabinet hardware, a Jen Aire refer, side camera mirrors, Villa Ultra-leather furniture, Villa driver and passenger seats and more.

It was a sad day for the small community in Oregon. Many former workers walked around talking to bidders and shaking their heads. They were surprisingly helpful as they freely offered their insider advice and volunteering to be available with others for hire should we want to have work done in the area before taking the motorhomes back home.

There is a glimmer of hope for these workers, as well as orphaned Country Coach owners. It was reported that Bob Lee, the founder of Country Coach, bought the intellectual properties for $160K. Those properties included the name and mailing list. I think he also owns the land and the buildings. If that is true, he could probably open back up after everything is cleared out and start fresh if he could get the backing of lenders. If that isn't his plan, I can't imagine why he would pay $160K for the name! Can you?

Go camping more--have more fun! Lee

Comments

Jim Linville wrote:

I have different feelings for the demise of CC - although I feel for the workers. I spent the past summer across I5 from Guaranty , a family run business similar to yours Lee, and watched CC sell new coaches direct to the customer and under cut the prices of Guaranty's 2 year old NEW coaches. CC also had some legal issues with selling inventory not paying their lender. No ethics. Bye, bye CC!

Monaco's head quarters was within walking distance from where I was staying in Coburg. I feel no differently for Monaco - they screwed their customers and they screwed their dealers and NOW they want both to "dance" with them again. No ethics.

02/05 09:34:02

Ken Kirkpatrick, Victoria, BC wrote:

I watched the auction for most of the day - incredible! A business empire dismantled and pieced out in a matter of hours, everything from janitor cleaning supplies and framed office photos to completed $600,000 motorhomes. I feel for the workers, many of them who would have put their best years into this company. Most of the completed 2010 motorhomes went for less than half of the msrp, averaging $200,000 to $220,000.

02/05 11:32:09

Frank Schoenbeck wrote:

Lived in the area for 30 years watching CC grow and go through convulsions as the market changed.
For my 2 cents worth, the joining up with National took them down. Bob Lee's in and out dance didn't help much either.
Now he has an RV refurbishing business going right down the road from the old CC plant in Junction City.
There is a lot of talent for hire in the area.

02/05 21:48:43

Lee wrote:

Jim, I didn't know CC was selling direct to the customer. That's fine if everyone is upfront. We have Newell here in Oklahoma who only do custom coaches and sell direct. They take in their own trades and sell them retail. There are no dealers.

Foretravel used to be that way, too and then tried the dealer network. I'm not real sure if they have dealers or not now. The point is, having a dealer network and then selling out the back door is one of the surest ways of going out of business. If you depend on a dealer network, you can screw them over and expect to stay in business.

Monaco and Fleetwood made deals with Camping World and paid the highest price for it. At least Fleetwood sounds like they came to their senses. I understand they paid the dealers warranty and shipped parts to take care of the retail customer as well as the dealer. At least they have a chance of being successful after bankruptcy. Monaco treated everyone dispicably in my opinion, and they will have a tough time surviving--again, in my opinion.

02/06 17:55:20

Jim Linville wrote:

Lee,
CC started selling directly to customers about 18 months or so ago when they ran into their latest bout with financial trouble. They openly advertised that they would sell for less because they were selling directly to the customer. I don't remember if they had already filed for bankruptcy. I do know they were trying to arrange private financing during that time for a share of CC ownership. In the mean time the dealers had 2 year old inventory sitting on their lot. While I was there a guy next to me at the campground priced a 2 year old CC coach at Guaranty and then bought a 2010 for less directly from CC. I doubt if the Guaranty entered into a dealer agreement with CC knowing that CC was going to sell directly. Based on the number of new, unsold Monaco and CC inventory Guaranty had on their lot I don't know how they could stay and in business - unbelievable.

02/07 07:40:51

Bob Lilienthal wrote:

It is like the banks, builders, and car dealers: greed. Those with high standards tend to stay, but those cost-cutting, under-the-table, out-the-backdoor, dealmaking wheeler dealers hurt everyone and are the first to go. If their pockets are deep enough they reorganize or start another business....so, watch out for them the next time.

02/07 08:43:21

02/05: Country Coach auction

Comments

Jim Linville wrote:

Ken Kirkpatrick, Victoria, BC wrote:

Frank Schoenbeck wrote:

Lee wrote:

Jim Linville wrote:

Bob Lilienthal wrote:

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