Passport RV, a dealership in Knoxville, Tenn., owned by iRV Inc. of Colorado Springs, Colo., has closed because it could not obtain necessary working capital to continue in operation.
iRV once hoped to become an RV dealership “roll-up” firm, buying independent dealerships to eventually become a national chain. However, Passport RV, formerly known as Coach & Campers, was the only dealership iRV ever bought.
Passport RV’s closure occurred on Aug. 30.
Passport RV’s financial performance actually improved when compared with a year-ago, according to a document iRV filed with the Securities & Exchange Commission (SEC).
iRV lost $31,399 during the three months ended June 30, on sales of $1,089,920 at Passport RV. During the April-through-June portion of 2000, iRV lost $593,714 on sales of $1,056,247 at Passport RV, which primarily sold towable RVs.
iRV’s expenses during the April-through-June portion of 2000 included $280,500 in stock issuance costs and $27,250 in website development costs. During the April-through-June portion of this year, iRV had no stock issuance costs and it spent only $60 on website development during the quarter.
iRV stock now trades at 7 cents per share.
Passport RV was closed because the dealership “faced increasing economic pressures and financial losses,” according to iRV. “Substantially all the inventory was returned to the secured lender.”
Although Passport RV was iRV’s principle operating subsidiary, iRV “expects to continue its other activities, including the development of iRV.com,” the company’s Internet portal for RV enthusiasts.
Currently, iRV.com does not generate any revenue and is not expected to do so in the foreseeable future, but the parent company will continue operating the website and it will seek other business opportunities, according to iRV.