William Rex, president and CEO Lancaster, Calif.-based motorhome builder Rexhall Industries Inc., blamed extenuating circumstances unrelated to the current downturn in the industry for his recent decision to file for bankruptcy protection.
“We believe it (bankruptcy filing) should have no effect on our customers and will help us to weather this storm we are all facing,” Rex told RVBusiness.
The publicly-traded company’s petition lists $5.1 million in assets and $4.9 million in debts.
He said he has talked with most vendors and they have agreed to extend his firm credit or put him on COD.
“In the midst of all this, we have expanded our factory-direct sales effort by opening up a new dealership on the 14 Freeway in Lancaster,” Rex noted.
In court documents the company explained that it began selling its products factory-direct instead of through dealers because of too much exposure to costs under lender re-purchase agreements.
Rex projects sales will move upward again by 2010.
Rex owns 55% of the shares in the company whose stock is traded on the “pink sheets” under the symbol REXL.
The company gained attention at the 2003 National RV Trade Show in Louisville, Ky., with the debut of the T-Rex that featured opposing full-wall sliderooms. The slideouts were interlocked with the coach’s welded uni-body, steel-frame construction.
The company currently builds gas and diesel Class A motorhomes under the Aerbus, RexAir and RoseAir brand names in a 120,000-square-foot factory in Lancaster.
The units retail for between $130,000 and $280,000. Sales totaled about $5 million last year, down about 45% from the year earlier. Rex once employed upward of 400 employees but was down to 46, according to the court filing.