BREAKING NEWS

RV Business
Thursday, May 1, 2008

Alfa Leisure Inc. has ceased operations at its headquarters in Ontario, Calif.

Several dealers that handle the company’s line of See Ya! Class A motorhomes and Alpha luxury fifth-wheels confirmed with RVBusiness they received notice the company had shut down. Other industry sources informed RVBusiness that the factory was closed and locked Wednesday (April 30).

Calls made to Alfa Leisure were unanswered and attempts to contact representatives at Los Angeles-based Nogales Investors, which acquired Alfa Leisure in 2005, were not returned.

On April 21, Alfa Leisure reported that it had secured property to build another manufacturing plant in Oregon’s Douglas County. At the time, Alfa said that Ontario would continue to be its headquarters.

Alfa is the latest Class A motorhome builder to close down as the sector is currently in its fourth year of declining sales.

Yakima, Wash.-based Western RV Inc., which is owned by private equity firm Monomoy Capital Partners, ceased operations on April 15. Travel Supreme Inc., Wakarusa, Ind., had suspended operations before forging a deal with Middlebury, Ind.-based Jayco Corp. in an asset buyout on April 4.

Several publicly-traded manufacturers have also reported lower performance in the early part of 2008, pulled down by depressed motorhome sales.

Alfa Leisure was established in 1973 by CEO Johnnie R. Crean, son of retired Fleetwood Industries Inc. founder and CEO John C. Crean who passed away in January of 2007.

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BREAKING NEWS

Alfa Leisure Confirms Shutdown on Website

RV Business
Friday, May 2, 2008

Alfa Leisure Inc. published confirmation on its website today (May 2) that the motorhome and luxury fifth-wheel manufacturer had ceased operations at its Ontario, Calif., headquarters, impacting 150 employees.

“This is a sad day for Alfa Leisure and for the RV community,” said founder and CEO Johnnie Crean. “We gave this company our all, fought tooth and nail and in spite of a Herculean effort, could not overcome the financial headwinds that continue to plaque our industry.”

Crean cited “ongoing challenges" with supplier Crane Composites Inc. as a factor in the closing, aggravating adverse economic conditions. Several manufacturers alleged Crane had supplied defective sidewall materials, including now defunct National RV Holdings Inc. The company filed a lawsuit against the Channahon, Ill.-based firm that was settled in March.

“Alfa has been fighting an uphill battle and the final straw was certainly Crane’s unwillingness to stand behind its product,” said Crean. “We’d like to thank all of the owners and dealers who over the past 35 years have been our catalyst and our inspiration.”

Alfa Leisure had made several key management moves this year, including naming Scott Degnan as president. Crean noted, “About 90 days ago we were excited to bring in a high-powered new management team to try and save us, but it was far too late. The Crane issue quite simply became insurmountable.”

There are currently no plans for additional operations and the company shutdown, according to the website.

Alfa Leisure was acquired by Los Angeles private equity firm Nogales Investments in 2005. The company declined comment on the closing.

Sure didn't take 'em long to pull the plug on the website either.

L-

Probably better to pull the website. WRV, National RV and Travel Supreme's websites are all active despite essentially being out of business.

I guess I own an orphan.