Earthbound Recreational Vehicles LLC has shut down operations and its assets will be auctioned off to repay a loan backed by the city of Marion, Ind., according to a report posted by the Indiana Economic Digest.
A billboard advertising the Jan. 15 auction is posted in front of the travel trailer company’s former factory in Marion.
The city of Marion acquired the assets when Earthbound failed to meet the obligations of an economic development deal. Earthbound President and CEO Charles Hoefer could not be reached for comment.
In 2010, the city backed a $2 million loan to help Earthbound’s startup and recently footed the bill when the company failed to make a $155,000 loan payment.
Mayor Wayne Seybold said the city was exercising its right to sell the company’s assets to pay off the loan before economic development income tax (EDIT) money is used to repay the remaining debt, which is the bulk of the $2 million.
“We’re auctioning off everything they have,” he said. “There are a lot of assets to auction off. We’ll get as much money out of it as we can.”
To read the entire article click here.