Potomac RV LLC, Elkhart, Ind., a 2 1/2-year-old manufacturer of entry level towables that was chosen by the Recreation Vehicle Dealers Exchange Co. (REDEX) to build a private label fifth-wheel trailer for the national buying group has closed down.
Rumored for several weeks, the shutdown was confirmed in a June 27 letter sent to suppliers by Potomac Managing Member James E. Johnson.
“We have explored our options and, unfortunately, at this point it appears that we will not be reopening our doors,” Johnson said.
The letter said that Potomac’s assets would be liquidated to satisfy a secured loan that had been called by MFB Financial, and that if any proceeds remain, they will be distributed to unsecured creditors.
Founded by a core of former Holiday Rambler executives and an unidentified group of RV dealers, Potomac produced its first mid-priced travel trailer – the self-named Potomac – in October 2002 and within a year expanded into fifth-wheels.
Potomac was in the process of rolling out the Liberty light-weight travel trailer and fifth-wheel line when the company closed.
Ron Wheeler, REDEX general manager and president of Wheeler Marketing Service Inc., Arlington, Texas, said that contracts between Potomac and REDEX had not been finalized, and that no REDEX fifth-wheels – to have been called Venetian Suites – had been produced yet.
“We had moved pretty close to getting this thing (REDEX’s first house brand offering) to have legs, but we hadn’t finalized any transactions,” Wheeler said. “We continue looking at this as being what we want to do. Potomac’s closing puts us back in the in-progress mode.”
Wheeler said that other companies that he declined to identify already had made inquiries about manufacturing the REDEX private label towable lineup, the Potomac version of which was to have sold in the $60,000 retail range.