As previously reported, GE Commercial Distribution Finance (GECDF) filed suit in early April seeking a restraining order, claiming the high-profile retailer has an “out-of-trust” balance of just over $3.56 million. The alleged “default” stems from the closure of its outlet in Mesa, Ariz., and the subsequent distribution and sale of inventory at other McMahon’s RV sites.
Lemonis noted, “This is the toughest RV transaction that I’ve ever seen and I’ve been doing this for 11 years. Employees and customers are caught in the cross fire.”
Lemonis emphasized that the deal hinges on approval from GECDF, McMahon’s “floorplan lender and landlord.” He added, “If this goes through it should go a long way to filling the hole for both customers and employees.”
McMahon’s RV is a longtime dealer in Southern California, and represents one of a few RV retailers in the area that survived the effects of the recession. Lemonis acknowledged that owner Brent McMahon had built a strong business model.
“Brent is a great marketer and he built a nice business,” he said, “but this transaction is something that needed to happen for everyone’s sake.”
Lemonis was unable to pinpoint a timeline for the transaction, again stating that proceedings will pend on the go-ahead from GECDF.
A court date in the lawsuit, filed in the Central California U.S. District Court, is set for May 7 to determine “why the court should not grant GECDF a preliminary injunction” prohibiting McMahon’s from “further disposing of GECDF’s collateral.”
Citing a “default” on payments, GE Commercial Distribution Finance (GECDF) is seeking a restraining order against Mega RV Corp., an entity doing business as McMahon’s RV and now dissolved finance arm MCMRV Inc.
Per documents initially filed April 4 by GECDF in the Central California U.S. District Court, the high-profile dealership – one of a short list of retailers to survive the deep recession in Southern California – has an “out-of-trust” balance of just over $3.56 million.
The alleged “breach” stems from the closure of its outlet in Mesa, Ariz., and the subsequent distribution and sale of inventory at other McMahon’s RV sites. GECDF claims the inventory’s value to be more than $28 million, for which it has not been compensated. The company also expressed concern that McMahon’s would continue to sell off inventory.
GECDF claims McMahon’s actions violate an Inventory Financing Agreement enacted in May of 2006 stating that the finance company is entitled to possession of all collateral. GECDF also claims that McMahon’s failed to acknowledge correspondence in February on two occasions informing McMahon’s the company was in default of payments due.
A court date is set for May 7 to determine “why the court should not grant GECDF a preliminary injunction” prohibiting McMahon’s from “further disposing of GECDF’s collateral.”
In commemoration of the 11th anniversary of the Sept. 11 attacks, Califoria-based McMahon’s RV recently provided transportation for three Marines who are recovering from injuries sustained during deployment in Afghanistan from Camp Pendleton to nonprofit Furnishing Hope’s Santa Ana warehouse. Combat veterans Mark Haney, Alex Reyna and Caleb Baxcsi were warmly greeted by volunteers from Home Depot and Bank of America who were at the warehouse to clean, organize and sort home furnishings, which the organization provides for Wounded Warriors who live near the medical facilities at the base. The Marines toured the facility before returning home. “We were honored to provide transportation for these American heroes,” said Brent McMahon, owner of McMahon’s RV. “We thank them for their service and hope they will recover soon.” OneOC, formerly Volunteer Center Orange County, helped organize the event, which was one of several service-oriented projects focused on the themes of support for veterans, disaster preparedness, education, and hunger/homelessness to highlight the 9/11 commemoration. “In the spirit of making our county a better place in remembrance of the tragedy of 9/11, these countywide service projects and events engaged prospective volunteers, asking them to participate in activities that support our troops and veterans, and improve the safety and vitality of Orange County residents,” said Daniel J. McQuaid, OneOC president and CEO. “We thank all of our volunteers, including McMahon’s RV, for their participation.”
When Traveland in Irvine, Calif., closed earlier this year, it looked like the end of an era.
The family-oriented, Old West-style recreational vehicle mall – one of the first of its kind in the country – was disbanded after a nearly 40-year run when the Irvine Co. decided not to renew Traveland’s lease, the Orange County Register reported.
With $4-a-gallon gasoline and a struggling economy, it would seem like a bad time to be in the RV business, much less thinking about expanding it.
But that’s what Brent McMahon, CEO of McMahon’s RV and one of the former Traveland dealers, has decided to do – but with a 21st century twist.
McMahon has set up his new RV shop on the old Sunset Ford property in Westminster and has a three-year plan to develop the four-parcel, 20-acre site into a new version of Traveland.
As McMahon envisions it, he will bring together not just RVs, parts and maintenance services, but all kinds of outdoor vehicles – motorcycles, bicycles, all-terrain vehicles, personal watercraft – all in one place.
“I plan to develop a recreational center that will be very diversified,” McMahon said during a recent walk-through of the new site.
He thinks it’s a concept that makes commercial sense, while providing a measure of defense during the inevitable economic downturns.
“When you drive by and gas is $5 a gallon, who would consider driving one of these?” he asks gesturing toward a lot full of RVs.
But he figures they might consider a motorcycle or a bicycle and then maybe come back when times get better to look at an RV or trailer. And that, McMahon believes, will help even out the ups and downs of the business.
McMahon’s plan comes at an interesting juncture for the RV industry.
A few years ago, after being whiplashed by a failing economy and skyrocketing gas prices, the death knell was sounded for the business.
RV deliveries fell 9.5% in 2007, 32.9% in 2008 and 30.1% in 2009, according to the Recreation Vehicle Industry Association (RVIA).
Nearly two dozen RV manufacturers closed nationwide and the number of dealers reportedly was cut in half. Stories ran with headlines like, “The RV’s last roundup.”
“It’s been a war,” McMahon said.
But things began to turn around in 2010 when vehicle deliveries nationwide jumped 46% and in 2011, which saw a 4% increase.
Richard Curtin, a University of Michigan professor who does forecasting for the RV industry, recently revised his 2012 forecast to a 5.1% increase in deliveries from his original projection of a 2.6% decline this year.
While conceding the industry has seen a very slow recovery – deliveries this year are expected to be only two-thirds of the peak year in 2006 – Curtin thinks demographics and even the economy will provide a boost.
He noted that most RV owners are at the prime age of 35 to 54 and they see RVs as an economical way for a family to travel, even with $4-a-gallon gas. RVs also work well for the shorter getaways that many travelers now favor, Curtin said.
Baby Boomers also are beginning to retire and are turning to RVs for travel.
Larry Kosmont, a Los Angeles expert in redevelopment, was a little more skeptical.
“ATVs, motorcycles and RVs can be pricey,” he said. “They rely on a more robust economy because they are voluntary purchases.”
Kosmont said a mall like McMahon’s will only be successful if it can generate volume.
McMahon is undaunted. He is convinced that when he builds it, they will come.
“I’m going to develop a center that can attract more people who can enjoy the great outdoors,” he said.
Forest River Inc. has contracted with California-based McMahon’s RV to sell the builder’s new Trilogy luxury fifth-wheel.
According to a press release, the 42-foot Trilogy offers a roomy interior with three sildeouts and 6-foot, 7-inch ceilings. Other amenities include a 40-inch HD TV in the living room, a 32-inch HD TV in the bedroom, Frigidaire stainless steel refrigerator, solid-surface countertops and an on-board floor vacuum.
“The Trilogy is a great RV addition to our already wide selection of fifth-wheels,” said Brent McMahon, president of McMahon’s RV. “We know our customers, and this fifth-wheel is something they will want for sure.”
McMahon’s RV is a division of MegaRV Corp. and has been serving Southern California since 2000. The dealership recently expanded into Arizona. For more information visit www.mcmahonrv.com.
McMahon’s RV reported that it ranked as the top California dealer in terms of unit sales for 2011, according to a report from Statistical Surveys Inc.
In a press release, owner Brent McMahon said that the Statistical Surveys report, which included 45 California dealerships, was confirmation of the company’s commitment to customer service. “Customer satisfaction is clearly shown by this report because we help each customer select the best RV to meets their needs,” he said.
McMahon’s RV is a division of MegaRV Corp. and has been serving Southern California since 2000, operating from three locations. It also opened a new facility in Mesa, Ariz., last year. For more information visit www.mcmahonrv.com.
Irvine, Calif.-based McMahon’s RV is scheduled to be featured on the popular local TV show, “Eye on LA,” before Christmas, according to a press release.
The show, which was highlighting the hottest expensive gifts for this holiday season, showcased the dealer’s lineup of luxury RVs. It will air Dec. 10 at 6:30 p.m. on the area’s ABC affiliate.
The “Eye on LA program” was filmed at the Irvine location, which is one of the seven McMahon RV sites in California and Arizona. Host Tina Maleve reviewed a mix of RVs from the high-end Monaco Class A motorhomes that retail for over $350,000 to smaller travel trailers which retail for $20,000.
“We are very pleased that ‘Eye on LA’ chose us to be the featured dealership for this segment”,” said Brent McMahon, owner of McMahon’s RV.
One of the largest RV shows for this year opened today (Nov. 11) at Angel Stadium in Anaheim, Calif., and is scheduled to run through Nov. 27. On display will be all the major brands of Class A and Class C motorhomes, plus travel trailers and fifth-wheels. The event is hosted by McMahon’s RV.
“We continually make great purchases with all the manufacturers to give our customers the best price for the type of RV they want,” said Brent McMahon, owner of McMahon’s RV, in a press release. “Our team of knowledgeable salespeople help customers decide which RV product is right for them.”
McMahon said that offering a wide selection of new and used RVs at the show “allows anyone who has been looking to get their first motorhome a chance to experience what owning an RV is all about. And those wanting to move up into a larger unit can now see all the different options of RVs at this major event.”
McMahon’s RV is a division of MegaRV Corp., which has been serving Southern California since 2000 and recently expanded into Arizona.
California-based McMahon’s RV is holding a grand opening at its Mesa, Ariz., store. According to a press release, Arizona consumers are familiar with the dealership which has operated seasonal locations in Yuma, Parker and Quartzsite for a few years.
The grand opening began on Sept. 23 and will continue to the end of November. The Mesa location dealership includes a full service center and a cafeteria.
“Our country has a lot of great historical sites and now is the time when families can travel without the heavy costs of airfares and hotels,” said Brent McMahon, president of McMahon’s RV. “We established this location because RVers from all across the country enjoy visiting this beautiful area.”
McMahon’s RV is a division of MegaRV Corp. and has been serving Southern California since 2000. The company has expanded and now has seven locations, including California stores in Colton, Irvine, and Palm Desert, along with the Arizona outlets. For more information visit www.mcmahonrv.com.
This week’s RV Show in Pasadena has an unusual star: For the first time, an RV dealer and manufacturer have teamed up in an effort to support a worthy charity.
According to RV News Service, the manufacturer, Eclipse Recreational Vehicles Inc., and the dealer, McMahon’s RV, are raffling off a 2012 Milan travel trailer and all proceeds will go to support the Children’s Hospital of Orange County (CHCO).
The campaign slogan, “Your $1 Can Win a Trailer. Help a Child,” is designed to remind those in the raffle that their money will help children at CHCO. The hospital was established over 45 years ago with the mission of providing the highest quality medical care to children.
Affiliated with the University of California, Irvine, the regional pediatric healthcare network includes a state-of-the-art 238-bed main hospital facility in the City of Orange, a hospital-within-a-hospital in Mission Viejo. CHOC also offers many primary and specialty care clinics, over 100 additional programs and services, a pediatric residency program, and four centers of excellence.
The trailer is an Eclipse 22-foot Milan22CKBG built on an ultra light chassis and features composite building techniques. Said to be a luxury model, the trailer scales in at a featherweight 3,900 pounds for easy towing.
Tickets are being sold at the show in the Pasadena Rose Bowl, and are also available at all California McMahon’s dealerships. They are in Irvine, Coulton and Palm Desert.