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With Monday’s (March 2) announcement by Monaco Coach Corp. that it was terminating around 2,000 employees and may be forced to close its doors permanently, the builder is now operating with around 150 employees nationwide.
“It’s a sad day for everybody,” said Craig Wanichek, spokesman for the Coburg, Ore.-based RV manufacturer. “The company regrets the impact this has on employees, their families and the communities we operate in.”
The news also impacted investors as Monaco was trading at 7 cents a share in early trading today.
Monaco said Monday that without consummation of a sale or obtaining additional financing or capital, it may ultimately be forced to shut down operations.
The bulk of Monday’s job cuts came at its headquarters in Coburg while around 515 workers in Indiana also received notice. Remaining employees are involved in sales, finance, accounting and management of the company.
Monaco’s interests in the Hoosier state are primarily in Warsaw at the company’s R-Vision Inc. subsidiary, acquired in November 2005. Certain towable and motorized operations were transferred to Warsaw after Monaco shut down most of its facilities in Indiana last July, impacting 1,400 workers.
Monaco also builds cargo trailers at its Roadmaster plant in Goshen and horse trailers at the Bison facility in Milford. According to a report in the Elkhart Truth, the company’s joint venture with Navistar International Corp. to build chassis in Elkhart is not affected by the cutbacks.
Wanichek told the Truth that the company has been working “extremely diligently,” to find a buyer or arrange additional financing. In November, the manufacturer was able to secure $80 million in new financing from several financial institutions and Bank of America along with a $39.3 million loan from Ableco Finance LLC.
Still, Monaco’s slide continued and by January it was in danger of being delisted by the New York Stock Exchange.
For the third quarter of 2008, Monaco posted net sales of $166.3 million, down 48.4% from the $322.4 million recorded in the third quarter of 2007. Gross profit also fell to $782,000 during the third quarter from $36.2 million for the same period last year.
The company is nearing a March 16 deadline to file its 2008 annual report with the U.S. Securities and Exchange Commission (SEC). Wanichek declined to say whether Monaco would meet that deadline or will have to request an extension.