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Fleetwood sells folding trailer division


The following is from a Fleetwood press release on 4/30/2008:

Fleetwood announced that it has signed a definitive agreement for the sale of Fleetwood Folding Trailers, Inc., located in Somerset, Pa. The sale is subject to customary closing conditions including bank approval, with a substantial part of the proceeds expected to be used to partially pay down the existing real estate term loan. The Company emphasized that no further disclosure will be provided until either the sale closes or the transaction is terminated.

"The folding trailer division has not proven to be particularly synergistic with the rest of our RV businesses," Smith said. "Going forward, we intend to direct our focus to the remaining higher-volume RV and Housing businesses, with a particular emphasis on completing the turnaround of our travel trailer division. The successful closure of the folding trailer transaction will contribute significantly to our goal of focusing on core businesses and adjusting to changing markets."

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Readers comments:

Hal :   Travel trailers, I think will be the next important focus for the RV industry because of obvious factors like the cost of fuel and also because of the poor track record of RV Coaches and the fact that they have disappointed so many people. I hope that Fleetwood, once they consolidate will concentrate more on quality control.

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