Coburg, Ore.-based Monaco Coach Corp. announced today (March 2) it has provided termination notices to the majority of its remaining work force while it continues to seek additional financing and capital or a corporate transaction.
Most of the separated employees had already been on furlough since mid-December 2008.
In its notice to employees, the company noted that without consummation of a sale or obtaining additional financing or capital, it may ultimately be forced to shut down operations.
Monaco did not immediately return requests for comment by RVBusiness.
Monaco closed for an early holiday furlough on Dec. 15. The company extended the layoff three times, the latest designating a production startup in March.
A report by the Wall Street Journal said that around 2,000 employees would be terminated, leaving the company with about 150 workers. Monaco also owns towable builder R-Vision Inc., based in Warsaw, Ind.
The latest news follows a series of cutbacks over the past year as Monaco struggled with the impact of a flagging economy and record-low consumer confidence. In July, the company announced it would close the bulk of its Indiana operations, impacting 1,400 workers. The majority of production was moved to Coburg while some towable and motorized operations were transferred to Warsaw.
At the time, Monaco retained its Bison and Roadmaster specialty trailer operations in Milford and Goshen, respectively. It also continued a joint venture chassis operation with Navistar Inc. in Elkhart.
In January, Monaco hired Imperial Capital LLC as a financial adviser to assist the company with its evaluation of strategic alternatives. In addition, the builder has also been dealing with debt obligations, including renegotiating a three-year $80 million facility last November.
In February, the company entered into a forbearance agreement with Bank of America and GE Commercial Distribution Finance with respect to certain repurchase obligations. The lenders agreed to withdraw some repurchase demands through April 6.
It was also reported last December that a Tulsa, Okla., hedge fund had upped its stake in Monaco and controlled nearly 14% of the company.