Believing the dealership chain was “too concentrated in Florida,” Holiday RV Superstores Chairman Marcus Lemonis has closed the Recreation USA locations in Tampa and Fort Myers.
The company also closed one of its two locations in Ocala, Fla., although it plans to re-open its Clermont, Fla., location next month, Lemonis said. The Clermont location has been closed since it was extensively damaged by fire last April 29.
Lemonis also hopes to open a Recreation USA location in Jacksonville or Stuart, Fla., during 2002.
During Recreation USA’s early days as a RV dealership roll-up, the company acquired locations in central Florida that were so close, they “cannibalized” each other, Lemonis said.
Lemonnis now believes, “The roll-up approach is not affordable or practical in this market.”
Instead, Recreation USA will minimize its investment by leasing the site of its new locations, instead of buying existing businesses or properties, he said.
The first examples of the “roll-out” approach will occur in Las Vegas, where Recreation USA will open a store in about 30 days, and in Myrtle Beach, S.C., where the company plans to open during February, Lemonis said.
In Las Vegas, Recreation USA will open on the former Steve Austin’s Motorhome Safari site, and in Myrtle Beach, the company will open at the former Brown’s RVs and Campers location.
Recreation USA cannot exceed its current floorplan line of credit in stocking the new locations with inventory, Lemonis added. That is why, for example, Recreation USA did not buy the inventory of the Steve Austin’s location in Las Vegas, he said.
Currently, Recreation USA operates stores in Ocala, Sanford and Winter Garden, Fla.
The Sanford location is being converted from an RV auction into a traditional RV dealership, Lemonis said. Sanford operated as an auction site the last several months so Recreation USA could sell off the units in its inventory that were more than 365 days old, Lemonis said.
Recreation USA also has two dealership locations in California and one each in Kentucky, New Mexico, South Carolina, Virginia and West Virginia.