Newspaper: McMahon RV’s Troubles Continue
Longtime Southern California-based dealer McMahon’s RV continues to struggle, according to a report by the Orange County Register.
George Carson, a publicist for company owner Brent McMahon, confirmed Friday (May 23) morning that all of the firm’s locations, including the flagship in Westminster, had been closed. Hours later, Carson told the Register that only the Mesa, Ariz., and Quartzsite, Ariz., sites were closed, while the other stores have limited staff to handle customers.
Phone calls to the Westminster office on Friday afternoon were not answered and the company’s website is no longer live.
The company also has been tangled in a court battle in U.S. District Court in Santa Ana with GE Commercial Distribution Finance Corp., which provided McMahon credit to finance its RV inventory. GE has accused McMahon of defaulting on payments and continuing to sell financed RVs to consumers, even after receiving default notices, court records show.
The value of collateral in McMahon’s possession is up to $28 million. To date, the dealer has sold more than $3.5 million worth of collateral out of trust, claims GE, whose attorneys, Wayne R. Terry and William J. Sexton, did not respond to a request for an interview.
Carson says negotiations between the parties are ongoing.
“GE took aggressive and unnecessary actions against our company, which forced us into a sale process,” said McMahon, in a statement shared through his publicist. “The sale-term agreement has a nondisclosure clause. We are working toward a resolution for all parties involved.”
For the full report click here.