Recreation vehicle manufacturer Glendale International Corp., Oakville, Ontario, reported today (Jan. 19) that it has voluntarily filed for bankruptcy under Canadian bankruptcy laws, according to a news release.
All corporate directors have resigned and the company expects Ernst & Young Inc. to be appointed as trustee of the estate of the corporation.
“The recent economic downturn, the rising Canadian dollar and higher gas prices have had a devastating effect on the recreational vehicle industry in North America,” said Edward Hanna, chairman and CEO. “Over the past few months the corporation has undertaken an extensive internal review as well as engaged outside consultants to assist it in reviewing all available options and strategies which it could pursue to rebuild the recreational vehicle division, its primary business. However, given that there does not appear to be a significant rebound of the Canadian RV industry and the commercial structure business for the energy sector in the near term, the board of directors determined that a voluntary assignment in bankruptcy was in the best interests of the corporation’s stakeholders.”
The Canadian Press reported that Glendale has manufacturing plants in Strathroy, in southwestern Ontario, and Red Deer, in central Alberta.
According the most recent financial report issued by the company in October, the Glendale RV division had just under $9 million in sales for the first nine months of 2009 — down from about $16.6 million in the same period of 2008.
Sales at the Travelaire division were more resilient, falling to $6 million from $6.7 million in the first nine months of 2008.
In addition, Glendale is part owner of Firan Technology Group Corp., which makes printed circuit boards for the aerospace and defense industry.
Marketer of the Titanium and Travelaire RV brands among others, Glendale was founded in 1971 and at one point held a 40% share of the Canadian RV market. The company’s parent, Firan Corp., was a factor in the U.S. market in the 1990s, operating two Elkhart, Ind.-area companies — Firan Motor Coach Inc. in Elkhart and Fireside RV Inc. in Bristol.
The Toronto Stock Exchange said it has begun an expedited review to delist the company’s shares from the key stock market.
Telephone calls by RVBUSINESS.com to the company went unanswered.