Foretravel Paychecks Issued
Highline motorcoach manufacturer Foretravel Motorhomes Inc. distributed employee payroll checks today (Feb. 27) after resolving a cash-flow interruption that delayed the payments by a day.
Company President Ray Fore said “two or three” of the company’s customers did not take delivery of their motorhomes when the company anticipated. “Our schedules didn’t match,” Fore said, and, as a result, the firm had a temporary cash-flow problem.
A memo distributed to Foretravel employees on Thursday (Feb. 26), stated the following, according to the Daily Sentinel of Nacogdoches, Tex.: “In the ongoing process of working with our existing bank to renegotiate our credit facility, we have unfortunately encountered delays. As a result, we are forced to postpone the payment of this week’s payroll. We hope to make these payments Friday afternoon, Feb. 27. We sincerely regret this inconvenience, but are confident that our good working relationship with the bank will prevent a reoccurrence of this situation.”
Cash-flow difficulties can arise for producers of expensive, luxury products because the big price tag also means low production volume, Fore said.
Foretravel is dealing with that fact of life by developing a network of independent dealers to replace its company-owned stores.
The firm has five independent dealers and it intends to sign at least five more, Fore said.
Earlier this month, Indianapolis-area dealership Stout’s RV Sales Inc. and McClain’s RV Superstores Inc., with locations in North Dallas and Fort Worth, Tex., and Oklahoma City, Okla., agreed to inventory Foretravel units.
Late last year, Featherlite Luxury Coaches agreed to stock Foretravel units at its sales location in Sanford, Fla.
Foretravel’s other indepedent dealers are American RV & Marine, with locations in Albuquerque. N.Mex., and Anthony, Tex., and Saddleback RV of Irvine, Calif.