As previously reported, GE Commercial Distribution Finance (GECDF) filed suit in early April seeking a restraining order, claiming the high-profile retailer has an “out-of-trust” balance of just over $3.56 million. The alleged “default” stems from the closure of its outlet in Mesa, Ariz., and the subsequent distribution and sale of inventory at other McMahon’s RV sites.
Lemonis noted, “This is the toughest RV transaction that I’ve ever seen and I’ve been doing this for 11 years. Employees and customers are caught in the cross fire.”
Lemonis emphasized that the deal hinges on approval from GECDF, McMahon’s “floorplan lender and landlord.” He added, “If this goes through it should go a long way to filling the hole for both customers and employees.”
McMahon’s RV is a longtime dealer in Southern California, and represents one of a few RV retailers in the area that survived the effects of the recession. Lemonis acknowledged that owner Brent McMahon had built a strong business model.
“Brent is a great marketer and he built a nice business,” he said, “but this transaction is something that needed to happen for everyone’s sake.”
Lemonis was unable to pinpoint a timeline for the transaction, again stating that proceedings will pend on the go-ahead from GECDF.
A court date in the lawsuit, filed in the Central California U.S. District Court, is set for May 7 to determine “why the court should not grant GECDF a preliminary injunction” prohibiting McMahon’s from “further disposing of GECDF’s collateral.”