Destinations RV, a multi-location dealership with stores in Oregon and Washington, closed on Dec. 6 because it ran out of cash, according to The Register-Guard newspaper of Eugene, Ore.
Destinations, which hoped to become a major West Coast dealership chain, is owned by former SMC Corp. President Jay Howard and his brothers. It closed its three locations because it grew too fast and ran out of cash, said Matt Howard, marketing director, to The Register-Guard.
The Destinations locations were in Coburg and Bend, Ore., and Fife, Wash., a suburb of Tacoma. The dealership operated out of leased locations in all cases, the newspaper reported.
The company, which opened in 1997, closed because it could not find new investors or raise capital by other means, Matt Howard told The Register-Guard.
Destinations opened the Fife location and a dealership in Camarillo, Calif., late last year. The Camarillo location was closed during June and Destinations left the towables segment at that time to concentrate on the high-end Class A motorhome, $100,000 to $800,000 retail, portion of the business.
Destinations was a major dealer for SMC, accounting for about 21% of SMC’s volume, according to The Register-Guard.
SMC and other manufacturers will repurchase Destinations’ new unit inventory and the lenders who provided the dealership with used unit financing will take that inventory.
A Chapter 11 bankruptcy filing remains a possibility, Matt Howard told the newspaper.