Despite the existence of litigation between McMahon’s RV and GE Commercial Distribution Finance (GECDF), the Southern California dealer says that the two parties “have been in constant negotiations to reach an amicable resolution that benefits McMahon’s RV’s employees and customers.”
“GE and McMahon’s RV are discussing potential ways to resolve their dispute for the benefit of employees and customers,” stated Brent McMahon, president of McMahon’s RV, in a press release. “GE joined in our discussions with Camping World to facilitate a possible asset sale and mutual settlement arrangement.”
On April 13, 2014, Camping World Inc. entered into a letter of intent to acquire the assets of McMahon’s RV, which operates dealerships in Westminster, Colton, and Palm Desert. The deal would have enabled Camping World to quickly expand into the Southern California market where McMahon’s RV has a dominant presence. By its terms, the letter of intent expires Saturday (April 26).
“It is clear that McMahon’s RV and GE are working toward finding the right suitor to purchase the company, keeping in mind the best interests of the employees and customers,” stated McMahon. “GE has agreed in principle to make concessions to consummate a deal between Camping World and McMahon’s RV. Given the favorable terms of the transaction, we believe that multiple buyers will be interested if the current deal is not concluded.”
In a report appearing yesterday on RVBUSINESS.com (see related story), Camping World President and CEO Marcus Lemonis questioned whether the deal could be put together, noting, ” … We’re trying to figure out a way to do it and it’s not looking good because the hole – the amount of money it will take to really clean everything up – is so big.”
Upon expiration of the letter of intent with Camping World, McMahon’s RV is able to entertain offers from other buyers. “GE has agreed to afford additional time to locate other suitors in the event the letter of intent expires without a deal,” stated McMahon. “Representatives of GE communicated to me that whoever buys McMahon’s RV will be in a position to ‘print money’ within 15-18 months of closing a deal.”
For additional information contact Adam Obeid, Esq., at [email protected] or (949) 733-3134.