trnfla
Tampa
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Joined: 06/17/2006
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Here is a link to the newspaper story:
Tribune
Have a great time camping,
Terry
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Klueck
Georgia
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I hope they will come through this. They were a great company to do business with.
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teddycp
illinois
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Joined: 03/01/2008
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Good Sam RV Club
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Don't you just love the way that this whole system works? Run up debt, spend more than you earn, and then get your creditors to forgive the debt so you can stay in business and do the same things that got you into trouble all over again. Perhaps we should all incorporate ourselves so we can do this!
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trop-a-cal
Palm Coast Fl
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Wallace was smart when he retained the land and sold the business to the employees. They will still be subject to court ordered liquidation of any inventory and assets. That may be a buying oportunity as bids usualy are 60% of wholesale cost. Since mark-up is 40% over cost, the MSRP's will be discounted to 36% or a $250,000 MSRP could go for $90,000. This is what happened to National RV during the court ordered liquidation. The bidders usualy are other RV dealers, that buy in quantity, as was the case with National. Those buyers then sold the inventory for a quick 30% profit or the origionaly $250,000 MSRP units went for $117,000. That is 47% of MSRP. Funny thing was the one year old used units were listed in NADA as being worth $160,000. So the buyers got a real good deal. The statement that high fuel prices caused the problem is not what caused their problem, it was extending themselves thinking they would not be affected, as they were "unique" and buyers would come with all they offered. They would be smart to cut back and sell off some of the area and turn it into a condo park for RV's. That may not happen as Wallace owns the land. A list of what the court will be selling and when should be posted on the court site soon. Of course Wallace could come in as a "White Knight" and buy the company back for pennies on the dollar.
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dgshaffer
Jerzee
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You can tack all that "forgiven" dept onto our current trillion dollar deficit. Good thing this new administration purchased bulk quantities of ink for their money printing machines. The supply of new fresh dollars seems endless 
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Duck
Miami Lakes, Fl
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If you read the whole story this is what is called a prepackaged chapter 11. They plan to emerge from the bankruptcy in a few months. This story was out two months ago. Hopefully the economy will improve and allow them to survive.
Don
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Delaine and Lindy
Linden Tn. (The View) /Gulf Shores, Ala.
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This has been a long time comming. Nothing is to big to fail. Just look were our Country is as for debt. GBY....
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tallyo
Fort Myers,Florida
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teddycp wrote:Don't you just love the way that this whole system works? Run up debt, spend more than you earn, and then get your creditors to forgive the debt so you can stay in business and do the same things that got you into trouble all over again. Perhaps we should all incorporate ourselves so we can do this!
Not sure the preceeding is accurate.....
Up until the recession they were very profitable. Not spending more than they earn.
When Sales slumped then their accumulated liabilities exceeded revenues..Cash flow was not sufficient to meet normal debt obligations.
For the past 3 months Lazy Days has exceeded their sales goals and appear to be on the road back. Not out of the woods but things are looking better....
Tallyo
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mpfireman
Cook County Il
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The company was in a catch 21 predicament. No units on dealers lots, means no sale, the customer goes to other brand or to a different dealer. To many on the lot and you have to discount these units due to the excess volume. Plus the job market, even if you have a job, tomorrow they might close the doors, and move to another state or country, so you put off any large purchases. And finally Gas prices did not help the motor home market, and the RV industry as a whole.
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skipnchar
Topeka Kansas USA
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Joined: 12/17/2003
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I could have sworn someone posted pretty much the same thing about Lazy Days six months ago 
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