Monaco gave Termination notices to workers

[Up N Flames]

Monaco Coach Corporation Has Provided Termination Notices to the Majority of Its Remaining Workforce
COBURG, OR, Mar 02, 2009 (MARKET WIRE via COMTEX) -- Monaco Coach Corporation (NYSE: MNC) announced that today it has provided termination notices to the majority of its remaining workforce while it continues to seek additional financing or capital or a corporate transaction. Most of the separated employees had already been on furlough since mid-December 2008. In its notice to employees, the Company noted that absent consummation of a sale or obtaining additional financing or capital, it may ultimately be forced to shut down operations.
About Monaco Coach Corporation

Monaco Coach Corporation, a leading national manufacturer of motorized and towable recreational vehicles, is ranked as the number one producer of diesel-powered motorhomes. Dedicated to quality and service, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests and offers products that appeal to RVers across generations.

Headquartered in Coburg, Oregon, with manufacturing facilities in Oregon and Indiana, the Company offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, and R-Vision brand names. The Company maintains RV service centers in Harrisburg, Oregon and Wildwood, Florida and operates motorhome-only resorts in California, Florida, Nevada and Michigan.

Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC." For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.

CONTACT:
Craig Wanichek
Director of Investor Relations
Monaco Coach Corporation
(541) 681-8029
Email Contact

[Jim Stewart]

They say that negative sentiment is making the the current problem worse.

They also say that the current problem was caused by people excessively using credit that they could not afford to repay.

They also say that the only way out of the problem, is to get people to again borrow money that they cannot afford to repay.

[RVRon]

by Jim Stewart: They also say that the only way out of the problem, is to get people to again borrow money that they cannot afford to repay.

And there's the cycle we're caught in....sigh...

[bullydogs1]

There is an unknown piece to this...because how could a company implode so quickly that got financing back in October and had a hedge fund buy up 15% of the stock? Yes if conditions were bad for years I could see this but we are talking months...so what happens to the upper people--Kay--Etc...do they get their severance packages while employees, owners, dealers, and Oregon get the shaft legally? I challenge Kay Toolson to communicate openly with his coach owners/dealers to let them know that they will come up with a plan after an organized Chapter 11 of some sort so current owners are not left out in the cold....I've said enough and I am hoping that they can get by another year to some sort of turnaround...Ford is doing it by a return to leasing...as are some of the foreign makes. Banks have to open up the credit strings by force if necessary from the government. I have heard people with high 700's be turned down on financing. That's what will turn this around if it is stopped...at least it can start up sales a bit. Meanwhile, I'm still hoping....

[RVRon]

There is an unknown piece to this...because how could a company implode so quickly that got financing back in October and had a hedge fund buy up 15% of the stock? Yes if conditions were bad for years I could see this but we are talking months...

Stu,
We'll never know all the pieces to this (as you implied). As far as comparisons, well, there's always A.I.G., now perfectly positioned to make another serious crater in the economy today. (and we all know how much financing has gone down the drain there..)
We are hopeful here that things will turn around but this kind of news does make you wonder..Ron

[Route 66]

This is indeed a sad day for Monaco.

Their stock has dropped 71% today, now trading at 13 cents.

[-Gramps-]

Even if someone loaned or gave them a bunch of money, that isn't going to provide them what they need the most, a demand from dealers for new rigs. Financing would buy them time but only God knows how much time they need. We are all in the same sinking financial ship, their end just filled up with water first.

[PintailRV]

well said gramps...the biggest problem with monaco is the excessive inventory... drive by the factory and you will see what I mean....there are tons and tons of fenced RV's (built and un-sold)... even if the market was booming they would have enough built inventory to last them for a good year and would not need to resume production... it is sad for all the employees who lost jobs....

[Pusherpilot]

The reason most folks can't buy RVs is the tightening of credit. The reason we got into this mess is because credit was too loose.
Obama went to Elkhart In to make a stump speech for his stimulus plan (translation, Porkulus) and recieved the adulation of those present. He also said during his pre-election speeches that unregulated lending was the problem.
Today he is telling us that credit is the lifeblood of our economy. I wonder what kind of reception he'd get in Elkhart or Coberg today?
The general public is beginning to look like the bear in the arcade game that runs back and forth presenting a target and roaring when hit.

[TXiceman]

In order for the economy to grow, there needs to be some credit. The basically unregulated credit that was being handed over by the banks was waht killed the thing. People were being pushed in to buying things that they really could not afford.

I know we are not spending one extra dime that we do not need to spend at the present time and so are a lot of other folks. If and when we get another tax rebate...it is going to the bank.

You would think that someone would want to buy Monaco, but they need the credit to do it. Not going to find many folks wth the cash to pull off a deal like that....maybe we need to get Bill gates interested in RVs or T.Boone Pickins.

Ken

[PintailRV]

its wayyyy too big of a liability for anyone to buy monaco... they have way too much inventory as well as massive debt the two things that will cause a coach company to crumble in these conditions... they made mistakes and underestimated the depth of the recession and kept building RV's they now cant sell and prolly wont be able to for quite some time....I have heard rumors of some odd 800 fenced coaches.. someone has to foot the bill for all the coaches on the fence and we all know that monaco surely cant afford that rite now.... its just a bad situation for everyone involved... I can see someone buying Country coach way before monaco as there is not near the liability involved as country coach has zero fenced coaches and a fraction of the debt of monaco....just my 2 cents

[-Gramps-]

I suspect that a bunch of the coaches sitting at the factory lot were contracted buy-backs from crashing dealers, but still adds up to too many coaches for the demand. A just in time inventory approach is going to be best way to go in the future. The dealer keeps a few coaches on the lot for people to look at and orders after the sale. That's one of the reasons that Custom coach builders may be the only rv survivors when this is over.

[Jim Stewart]

My last post was edited and for what I posted, I am sorry!

That being said, this is getting real ugly. It would seem that every company, let me repeat that, every company, has major problems. Some very smart people are saying that we are heading at light speed to a full blown DEPRESSION. Scotty, beam me up!

[SRT]

It is really sad. Hope Monaco can do a chapter 11 recovery. I've had HR products for over 15 years and thoroughly enjoyed them. Guess I'm "stuck" with my no-slide Vacationer.