Industry Research

100 Country Coach Workers Will Be Back On The Job

Posted on April 1, 2009 by LCT Staff - Also by this author - About the author

PORTLAND, Oregon — Luxury motorcoach manufacturer Country Coach, which has filed for Chapter 11 protection, will reopen with a reduced work force of 100 with the approval of a federal judge.

The company, whose Junction City factory has been shut down since November, said a few employees returned to work Tuesday and others should be back on the job by the middle of next week.

The company plans to finish a backlog of orders, including nine coaches ready to be sold and about 40 in various stages of production. It halted work on those orders as its financial troubles worsened.

In bankruptcy court, the company has presented a plan that would enable it to operate under a factory direct model with $2 million in initial financing from Wells Fargo, said Matt Howard, vice president of sales and marketing.

"We've submitted a plan, hoping to emerge from the Chapter 11," Howard said Tuesday. "We're getting started."

Country Coach, like many in the recreational vehicle industry, has been hit hard by a down economy that's undercut consumer spending. Headquartered in Lane County, Country Coach was forced to seek bankruptcy protection in February by three of its creditors, after Wells Fargo attempted to sue for the repayment of a $25 million loan.

According to court documents, Bankruptcy Judge Albert E. Radcliffe on Monday allowed the proposed credit agreement with Wells Fargo on an interim basis, with the bank's attorney submitting the order by today.

As of Tuesday afternoon, Wells Fargo spokesman Tom Unger said the bank had yet to reach an agreement with Country Coach on the terms of the financing.

"It's still in progress in the negotiations," Unger said. "It's not a done deal."

Country Coach's long-term proposal is to have customers place orders directly from the company's Web site, building motorcoaches as orders are placed. At its peak in 2006, the company employed 1,700 workers, but it would have far fewer workers after reorganization.

Source: Oregonian

View comments or post a comment on this story. (0 Comments)

More News

What The Traveling 1% Really Want From Tourism

They are looking for the same things — experiences and bragging rights — they just have the means to take it up a few notches.

How Major Names Are Disrupting Luxury Travel

Having the best hard product is a given. Now it's about experiences.

Luxury Travel Market Soars On Longer Vacations

According to a survey, 69% of luxury travelers take two-week vacations, while 25.5% take one-week vacations.

Millennial Business Travelers Want Better Mobile Moments

Corporate travel is being shaped by digital natives, which means companies must adapt to meet their unique habits, or be left behind.

Healthy Travel Jobs Growth During Trump's First 100 Days

With 15.8 million employees, leisure and hospitality was the top sector for U.S. jobs growth in April.

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

LCT Store

LCT Magazine - May 2017 $12.95 Post International LCT Show Issue COVER STORY: * Best Operators of 2017: Their Winning Secrets Revealed * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close