Erwin Hymer in Canada

[scubastevee]

Originally Posted by TriGlider

More info concerning Hymer NA. Looks like they've stopped production...


https://rvdailyreport.com/industry/h...ontario-plant/


https://kitchener.ctvnews.ca/product...-say-1.4273977

I read this stoppage could be due to an
inventory audit. Can't be counting parts while they are being installed. I used to work in a production line when the yearly inventory counts literally stopped the manufacturing process ... once counted, we could start up again. This is the best case scenario. Cheers, Steve

[RossWilliams]

The Cambridge plant produces the Hymer brands in North America and Thor has announced it is closing their deal for the rest of Hymer tomorrow. So the halt to operations at the Cambridge plant is probably related to separating the Hymer NA operations out of the Thor deal.



Roadtreks are still produced in Kitchener.

[TriGlider]

Hymer NA just laid off their entire staff. Looks like 800 or so got the bad news today.


https://rvdailyreport.com/industry/h...-entire-staff/


https://rvdailyreport.com/industry/h...-is-deafening/

[Squarepeg]

So much for that warranty. And parts for either Roadtreks or Aktivs.

[bobmac]

According to the Canadian news reports, Hymer filed for "receivership" Friday morning in the courts in Toronto. All employees were called to a meeting on Friday afternoon and told they were terminated. Both the Cambridge plant and the Roadtrek plant in Kitchener are affected. Employees were told they would be paid to Friday and would receive vacation pay sometime later. All of that would likely be dependant on the generation of cash somehow as the Receivership application stated they could not meet the current payroll.

[saddlesore]

Originally Posted by bobmac

According to the Canadian news reports, Hymer filed for "receivership" Friday morning in the courts in Toronto. All employees were called to a meeting on Friday afternoon and told they were terminated. Both the Cambridge plant and the Roadtrek plant in Kitchener are affected. Employees were told they would be paid to Friday and would receive vacation pay sometime later. All of that would likely be dependant on the generation of cash somehow as the Receivership application stated they could not meet the current payroll.

Hmmmmm....Now.... It would not surprise me in the least that Thor will wait it (receivership/bankruptcy ) out and then purchase the Canadian assets for pennies on the Canadian dollar...(And not having to assume any legacy debts or retirement commitments..)

[scubastevee]

Originally Posted by saddlesore

Hmmmmm....Now.... It would not surprise me in the least that Thor will wait it (receivership/bankruptcy ) out and then purchase the Canadian assets for pennies on the Canadian dollar...(And not having to assume any legacy debts or retirement commitments..)

Hi, the court document shows the following facts:

1. EHGNA is now owned by Corner Flag. Corner Flag was created to carve EHGNA out of the Thor deal.

2. Corner Flag loaned EHGNA millions to cover the employees wages, pension, outstanding vacation pay up to the day they were all terminated (you probably figured out who owns Corner Flag)

3. EHGNA has $300 million in liabilities. It wasn't clear if these liabilities included monies owed to dealers, suppliers and manufacturing facilities

4. EHGNA do NOT own the two locations they use in Cambridge and Kitchener, they are leased and not considered assets

5. Filing document states only 1 Director remains from EHGNA. All have either been removed or resigned. This document lists Jim Hammill as both Director and President of EHGNA

Now, you can speculate what point 5 actually indicates.
Info obtained via a former employee that knew the Receivership is going via Alvarez and Marsal Insolvency Canada. Erwin Hymer to be included in a Google search and you'll find the 69 page document.

I used.to dream of buying a RoadTrek!!

Steve

[RossWilliams]

This is a from the filing requesting the company be put into receivership.

"In short, Comer Flag desires to ensure that an independent court-officer has an opportunity to assess whether a solution can be identified for ENA whereby operations are restarted and to pursue such solution to the extent economically feasible."

It also says

"It is anticipated that the Receiver will be able to leverage market intelligence acquired through the prior sale process to streamline and expedite any process for the solicitation of bids for a turn-key operation."


It also says this:

"if Corner Flag and the Receiver determine that no offer satisfactory to Corner Flag and the Receiver, can be obtained by the end of a 6-week term, the Receiver and Corner Flag will agree on a process for the orderly wind-down of the receivership. If, however, a viable offer is identified prior to the end of the six-week term, the Receiver Term Sheet contemplates additional funding to consummate such transaction, on agreement of both Corner Flag and the Receiver."

As mentioned above Corner Flag is the entity Hymer NA was sold to prior to the closing with Thor.



One other thing of interest for Hymer and Carado owners was this:


"ENA licensed the intellectual property necessary to manufacture and sell recreational vehicles under the Hymer, Carado and Sunlight brands from
other entities in the Erwin Hymer Global Group (the "IP Licenses"). Pursuant to the Thor Transaction and Carve-Out Transaction, the IP Licenses are to be terminated. However, the CarveOut Transaction contemplates that where IP Licenses are terminated, ENA is to be provided with a "run-off' license for a reasonable period of time, not exceeding 12 months, on terms similar to those provided under the prior IP Licenses, so as to permit ENA to, among other things, sell off existing inventory and/or satisfy existing obligations towards customers or other third parties."

[wanderso]

Bad / unethical business practices eventually get caught. Sadly, many of the rank-and-file employees who had nothing to do with it end up seeing the results. We still need people buying brand new RVs to keep the industry moving forward,but it sure makes one want to only get a used one rather than anything with a deposit.

[TriGlider]

Looks like it’s taking its toll on their suppliers now...


https://kitchener.ctvnews.ca/mobile/...oses-1.4315698

[scubastevee]

Originally Posted by TriGlider

Looks like it’s taking its toll on their suppliers now...


https://kitchener.ctvnews.ca/mobile/...oses-1.4315698

Thanks for the link TriGlider.

Despite the optimism from J. Hannemayer, time is running out for a new buyer to step up to the plate. I've never thought this scenario to be likely.

Bankruptcy looms around the corner and then the fire sale begins. I suspect some companies will be interested in some of the assets but not in buying the remains of EHGNA.

Of course, I've known to be wrong ... from time to time! (Paraphrasing Star Wars & C3PO).

[TriGlider]

Things may be looking up for the workers...

https://www.therecord.com/news-story...=&utm_content=