Tuesday, March 3, 2009

Monaco Coach cuts 2,000 jobs

From the Oregonian:

Monaco Coach Corp., the 41-year-old recreational vehicle and trailer manufacturer based in Coburg, started handing out pink slips Monday to 2,000 workers -- a majority furloughed since mid-December -- and warned that the company could close entirely.
With its motto "Driving your dream" still posted atop its Web site, Monaco alerted the
state in a required filing Monday that if it doesn't secure new ownership or financing in the next 14 days, layoffs at plants in Coburg, Harrisburg and Hines could be followed by more job cuts.

Craig Wanichek, director of investor relations, said Monday's action affects jobs in Oregon and Indiana and leaves the company 140 employees.
He would not say at what point the company would decide to permanently close.
"We have been working to find a solution," he said, "and we will continue to work on that."

Wells Fargo & Co. recently filed a lawsuit against Country Coach seeking to collect payment on an $8 million loan.
On Feb. 10, Bryant Riley, a Los Angeles-based investment banker representing a group of investors, filed for Chapter 11 bankruptcy protection in an attempt to fend off Wells Fargo's move.

With its stock below $1 for more than 30 days, the New York Stock Exchange notified Monaco in mid-January that it risked delisting. The company's shares, still trading on the NYSE, closed down 40 cents, to 6 cents, Monday after the company announced layoffs.
In late October, Monaco reported third-quarter sales of $166.3 million, compared with $322.4 million during the same period a year earlier. For the quarter ended Sept. 27, the company reported an operating loss of $90.6 million, which included restructuring and impairment charges of $68.5 million, versus operating income of $6.5 million in the third quarter of 2007.