Law and Rights
If you own a National RV motorhome still covered by warranty, you've got trouble. The day after the "National Rv Trade Show" came to an end in Louisville, factory reps from all over the country packed their bags and headed home. Things were different for the California-based National RV company though.
The next day National RV filed Chapter 11 bankruptcy in California and posted notice on its website that it would no longer be honoring any warranty claims.
The bankruptcy can end up costing a lot of customers a lot of money because National RV dealers are likely to stop doing warranty work for free for customers now that the company won't be paying them anymore to do the work. The warranty won't be worth the paper it's written on if that happens. You can read National RV's letter to its dealers by clicking here.
That dealers won't honor the company's warranty is not surprising since there's a lot of motorhome dealers listed on National RV's list of creditors that it owes money to. You can view the list of people who were given notice of the bankruptcy, and those are mostly creditors, by clicking here.
In the bankruptcy filings, Perris California based National RV said it had assets of just over $52 million and debt of over $30 million. That might leave you wondering why they filed bankruptcy at all, but it's not unusual for companies to file bankruptcy to shed (or trim down) debt that they can't get under control or may not have enough cash on hand to pay when the bills come due, among other reasons. On the other hand, 6 years of losing money may have been enough.
Reports are that the motorhome builder shut down its headquarters and main production facility and laid off all employees, according to the Press-Enterprise newspaper. It was also reported that National RV's shuttering last week followed a year of turmoil during which the company was forced to sell its most profitable line of RVs (Country Coach was sold in February 2007) plus its land and buildings in Perris California just to stay in business. Then it leased back the factory. That was followed by the bankruptcy filing and laying off all the workers.
Candidly, David Humphreys, who has been chief executive since August, is reported to have said that the company had been trying to sell itself for sometime now, without success.
"But I think it's unlikely, and the RV market itself is quite flat," he said. "The good news is that we think, if we have to liquidate the company, which is likely, we will have enough money to pay off" their financial obligations.
If you're owed money then I suppose that might be good news. But if you're driving a National RV motorhome, none of this is good news. You can monitor the Bankruptcy Court filings in the National RV case by clicking here.
You may not be totally out of luck though if your sales paperwork gives you any rights against the rv dealer where you bought your motorhome, and if you have an extended warranty (sometimes called a service contract), then you may still be protected to some degree.
If you've got a lemon motorhome, don't wait until it's too late to do anything about it. Act fast and let us help you get rid of it.
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Law and Rights
National Rv Files Bankruptcy
If you own a National RV motorhome still covered by warranty, you've got trouble. The day after the "National Rv Trade Show" came to an end in Louisville, factory reps from all over the country packed their bags and headed home. Things were different for the California-based National RV company though.The next day National RV filed Chapter 11 bankruptcy in California and posted notice on its website that it would no longer be honoring any warranty claims.
The bankruptcy can end up costing a lot of customers a lot of money because National RV dealers are likely to stop doing warranty work for free for customers now that the company won't be paying them anymore to do the work. The warranty won't be worth the paper it's written on if that happens. You can read National RV's letter to its dealers by clicking here.
That dealers won't honor the company's warranty is not surprising since there's a lot of motorhome dealers listed on National RV's list of creditors that it owes money to. You can view the list of people who were given notice of the bankruptcy, and those are mostly creditors, by clicking here.
In the bankruptcy filings, Perris California based National RV said it had assets of just over $52 million and debt of over $30 million. That might leave you wondering why they filed bankruptcy at all, but it's not unusual for companies to file bankruptcy to shed (or trim down) debt that they can't get under control or may not have enough cash on hand to pay when the bills come due, among other reasons. On the other hand, 6 years of losing money may have been enough.
Reports are that the motorhome builder shut down its headquarters and main production facility and laid off all employees, according to the Press-Enterprise newspaper. It was also reported that National RV's shuttering last week followed a year of turmoil during which the company was forced to sell its most profitable line of RVs (Country Coach was sold in February 2007) plus its land and buildings in Perris California just to stay in business. Then it leased back the factory. That was followed by the bankruptcy filing and laying off all the workers.
Candidly, David Humphreys, who has been chief executive since August, is reported to have said that the company had been trying to sell itself for sometime now, without success.
"But I think it's unlikely, and the RV market itself is quite flat," he said. "The good news is that we think, if we have to liquidate the company, which is likely, we will have enough money to pay off" their financial obligations.
If you're owed money then I suppose that might be good news. But if you're driving a National RV motorhome, none of this is good news. You can monitor the Bankruptcy Court filings in the National RV case by clicking here.
You may not be totally out of luck though if your sales paperwork gives you any rights against the rv dealer where you bought your motorhome, and if you have an extended warranty (sometimes called a service contract), then you may still be protected to some degree.
If you've got a lemon motorhome, don't wait until it's too late to do anything about it. Act fast and let us help you get rid of it.
Burdge Law Office
www. Rv Lemon Law .com
Helping Rv'ers Get Rid of Lemons Since 1978
www. Rv Lemon Law .com
Helping Rv'ers Get Rid of Lemons Since 1978
Does your state Lemon Law cover motorhomes and rv's? Click here to find out.
Subscribe in a reader- Gm Gets Surgical
Doubt continues to grow on whether or not GM can avoid bankruptcy very soon. GM is backed into a corner with its well-heeled bond holders not budging and too many creditors clamoring for cash while the feds while away the hours on the doomsday clock....
- Navistar To Buy Monaco Coach ?
700 Monaco Coach shareholders are likely stuck holding an empty bag of shares of stock after the company terminated them and filed for bankruptcy in March. Everyone agrees the stock has become virtually worthless. When there's a bankruptcy, shareholders...
- Danger Of Bankruptcy
Whether Detroit's Big 3 get their bailout or not, consumers need to know what it can mean to them when a business files bankruptcy on their claim or their lawsuit. Recent reports of the bad economy undoubtedly worry consumers about the risk that the...
- Alfa Leisure Rv --- Gone With The Wind
It's official. Alfa Leisure Rv has shut down apparently for good. Their official statement, which was filed in federal court in one of their warranty lawsuits just days ago, blamed supplier Crane Composites and "Crane's unwillingness to stand...
- Rv Industry Continues Slump
In another sign of the continuing slump in the motorhome market, industry giant Fleetwood cut four dozen jobs and demoted dozens of employees at its Riverside, California plant yesterday. With revenue down 20% and posting a $16+ million loss last quarter,...