Coachmen Industries Inc. has decided to liquidate four of its six company-owned dealerships by the end of 2000.
The Elkhart, Ind.-based company will continue to operate two company-owned dealerships, including Michiana Easy Livin’ in Elkhart, said James Jack, Coachmen’s executive vice president and CFO.
Easy Livin’ and another Coachmen-owned dealership, which Jack declined to identify, are being retained by Coachmen “for research and development and regional service purposes,” according to a company statement.
Meanwhile, one Coachmen-owned dealership, Gulf Coast RV in Fort Myers, Fla., was liquidated prior to Sept. 30.
The three other Coachmen-owned dealerships, two in Florida and one in Georgia, will be liquidated prior to Dec. 31, said Jack, who added that he could not provide further details.
Coachmen decided to liquidate the four dealerships because they were recording operating losses, according to a company statement.
The company also assumed it might have to significantly discount inventory from the three dealerships that are to be liquidated before the end of this year. Any operating losses and losses due to discounting inventory at the liquidated dealerships would be included in Coachmen’s fourth quarter earnings report.
Coachmen decided to liquidate the four company-owned dealerships in order to “improve asset utilization.” Closing the four dealerships “should have a positive impact on earnings in 2001,” according to Coachmen.