Weekend Warrior troubles

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Old 07-29-2008, 01:05 PM
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Weekend Warrior troubles

There has been some discussion going on about this on RV.net. Looks like WW has been affected by many factors but I think they just expanded too much in the last few years.

<TABLE id=Table2 cellSpacing=1 cellPadding=3 width="100%" border=0><TBODY><TR align=left><TD class=articleTopCell align=left>Tuesday, July 29, 2008</TD></TR><TR><TD class=articleContentCell><TABLE id=Table3 width="100%"><TBODY><TR><TD></TD><TD class=Normal align=left width="100%">Weekend Warrior confirms closing
By Greg Gerber @ 8:45 AM :: 151 Views :: 0 Comments :: :: Manufacturing News
</TD></TR><TR><TD colSpan=3><TABLE id=Table4 cellSpacing=1 cellPadding=0 width="100%" align=center border=0><TBODY><TR><TD class=articleTable><TABLE id=Table5 cellSpacing=1 cellPadding=3 width="100%" border=0><TBODY><TR><TD class=articleTextCell>PERRIS, Calif. -- Weekend Warrior Trailers Inc. is shutting two Perris factories and has laid off about 250 workers, owner Mark Warmoth said Monday.

The company, like the entire recreational vehicle industry, has been battered by the declining economy and the slumping residential real estate market, he said.

The absence of home price appreciation, which often yields equity that can be tapped for the RV purchase, has cost the industry about 40 percent of its peak business, Warmoth said. Another 10 percent or more has vanished as consumer confidence has waned, he said.

Weekend Warrior, Warmoth said, was ill-prepared for the market to fall off after a boom that lasted more than a decade.

"I expected to be here for my customers forever," he said. He described his company as "still open, but in trouble."

Owners will still be able to get replacement parts, which are sold by other companies, he said.

It's been a rough year for Weekend Warrior -- three executives resigned in April, and the company let 100 people go in March.

Warmoth said earlier that he was expecting the company's sales for 2008 to fall about 25 percent from last years' $155 million, which was itself a 25 percent drop from 2006 sales.

SOURCE: Press Enterprise

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Old 08-15-2008, 11:52 AM
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Nobody seemed to care... but here's a follow up:

BREAKING NEWS
Warmoth: Weekend Warrior Liquidating Assets
Bob Ashley
RV Business
Thursday, August 14, 2008

Weekend Warrior Trailers Inc., the Perris, Calif., manufacturer that led the boom in sport utility RVs (SURVs) over the last decade, has ceased operations.

Given the company's production line closures and related layoffs in recent weeks, the news comes as no surprise to most in the industry.

“It's not a bankruptcy, but there is an assignee here who will be selling the assets,” Weekend Warrior founder and President Mark Warmoth told RVBusiness. “It's a voluntary deal, but Warrior is going all the way down. We are liquidating the company.”

An auction is expected within the next two months to dispose of Weekend Warrior's equipment, furniture and raw material, Warmoth said.

“We are still here trying to sort things out for customers,” Warmoth said. “The biggest regret is that I'm leaving a whole bunch of customers out there hanging. I hope the dealers will stand up for the customers, but this industry is a little weak on after-sale services.”

Efforts to find a purchaser for the company failed, resulting in Wednesday's (Aug. 13) announcement, Warmoth said.

The auction of assets will be used to pay down first and second mortgages on two Perris factories that Weekend Warrior owns. Two other plants were being leased by the company. Weekend Warrior, founded in 1988, at one time employed about 2,000 people in four plants totaling more than 215,000 square feet of capacity in Perris.

“All-in-all, we did some wonderful stuff in the last 20 years,” said Warmoth, adding that the industry slowdown and internal management errors doomed the company.

“It's a damn shame what's going on in this industry right now,” he added. “I have no regrets at all, except for this short window the industry is in right now. I am in awe of what the current situation is doing to RVs.”
 
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Old 08-15-2008, 12:00 PM
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kepler4, I'm afraid that this is probably just the beginning of troubles for industries that rely mostly on customer's "Disposable Income". Camping this summer, I've noticed the campgrounds are looking like ghost towns.
 
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Old 08-15-2008, 02:06 PM
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“The biggest regret is that I'm leaving a whole bunch of customers out there hanging. I hope the dealers will stand up for the customers, but this industry is a little weak on after-sale services.”

Heck of a quote. He's admitting that he has no intentions of supporting the owners of his product. I think any future income he makes should be attached to reimburse customers that have losses that would have been covered by the warranty.

Isn't abandoning a warranty a breach of contract?

I don't own a WW, BTW.
 
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Old 08-15-2008, 03:59 PM
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No, a warranty is only as good as the company that stands behind it. Company goes under, warranty goes with it.

I'm surprised that no one has mentioned how much gas prices have affected the RV industry. At today's prices, I'm surprised many people can afford to haul them around.
 
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Old 08-15-2008, 09:13 PM
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Originally Posted by andym
.......I'm surprised that no one has mentioned how much gas prices have affected the RV industry. At today's prices, I'm surprised many people can afford to haul them around.
I think that is the biggest issue; too high of fuel prices leading to less disposable income for many folks as they pay more for fuel and the goods with increased prices because of the higher fuel prices.

Not good for RV or boat sales.

We have cut back on the number of trips we would have previously made. I think many are making closer to home trips.

Bob
 
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Old 08-15-2008, 09:20 PM
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No doubt Andy and Bob, fuel costs and an uncertain economy have both cut into peoples 'fun funds'.

Who wants to buy anything new to tow right now? Very few folks, and I believe that will last for a good while... unless fuel prices drop well below $4.00 per gallon.

I just hope my WW is worth something in 5 or 6 years.

I'm hoping some company will see some value in providing parts service or maybe even resurrect the brand. We love our trailer and have been very happy with it for over two years.
 
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Old 08-16-2008, 11:38 AM
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I think the downturn in RV sales has come from the combo of high fuel prices and the real estate markets sag. No more easy equity cash to buy toys. Add to that a tight job market that has forced many to sell off toys, further driving down pricing and here we are. If you have money saved it's a great time to buy used stuff...
 
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