The principals of Coburg, Ore.-based dealership Destinations RV believe they have made enough progress raising additional capital that they feel confident the dealership will re-open, according to Matt Howard, marketing director.
Destinations RV closed its locations in Coburg and Bend, Ore., and Fife, Wash., on Dec. 6 “because we ran out of cash and could not, in good conscience, incur more debt that we did not think we could pay off,” said Matt Howard, whose father, Jim Howard, is one of the owners.
When Destinations RV will re-open was not know as of today (Dec. 15), Matt Howard said.
It also was not known which location would re-open.
The owners of Destinations RV, brothers Jay, John and Jim Howard, also hope to sell one of the locations, Matt Howard said.
The Howard brothers’ first priority will be to pay the company’s 90 employees, who were owed about two weeks pay when the business closed, Matt Howard said.
After the employees are paid, the next group to be paid would be customers who are owed money by the dealership. Then, the dealership’s vendors would be paid, Matt Howard said.
Destinations RV was a multi-line dealership and all of the manufacturers have taken back their new-unit inventory from the dealership. It is not currently known which brands Destinations RV will carry when it re-opens, Matt Howard said.
Deutsche Financial Services (DFS) was Destinations RV’s primarily source of inventory financing, and Matt Howard said DFS has been “very flexible and cooperative” in helping the dealership work-out of its financial problems.
Destinations RV was on target to do $90 million in sales this year, although Matt Howard said the rapid pace of growth created many of the financial difficulties.