Multiple employees at Erwin Hymer Group (EHG) have reportedly confirmed that production has stopped at the RV manufacturer in Cambridge, although sources close to the company told RVBusiness that a companywide inventory is underway at the Kitchener, Ont., plant and that “there’s nothing whatsoever to indicate that the plant is closing.”
The CTV Television Network was told there was a meeting on Tuesday (Jan. 29) morning at the facility and that employees are no longer allowed to touch the vehicles because they have already been sold.
Employees say the status of their jobs is uncertain.
The company previously said that no lay-offs were planned for the short term.
A statement from Erwin Hymer Group says the company is currently reviewing the business of the company’s North American branch.
“An initial investigation has shown financial irregularities in the company’s reporting. We have initiated a detailed audit procedure involving external auditors,” the statement reads in part.
Several managers have been suspended pending the outcome of the investigation.
Thor Moves to Exclude EHG N.A. in Buyout
The probe has prompted moves by Thor Industries Inc., which is poised to close on its acquisition of Erwin Hymer Group on Feb. 1, to exclude the company’s North American operations from the transaction.
In a statement, Thor said that after the closing, EHG would continue to be obligated on its existing contractual obligations related to the North American businesses, but otherwise will not assume any obligations or liabilities of those businesses under the terms of the stock purchase agreement.
The modifications are expected to include a purchase price reduction of $195.25 million.