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Newspaper: McMahon RV’s Troubles Continue

May 27, 2014 by · Leave a Comment 

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.

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McMahon’s ‘Working With GE’ to Settle Dispute

April 25, 2014 by · Leave a Comment 

Screen-Shot-2014-04-25-at-10.23.55-AM1-300x39Despite the existence of litigation between McMahon’s RV and GE Commercial Distribution Finance (GECDF), the Southern California dealer says that the two parties “have been in constant negotiations to reach an amicable resolution that benefits McMahon’s RV’s employees and customers.”

“GE and McMahon’s RV are discussing potential ways to resolve their dispute for the benefit of employees and customers,” stated Brent McMahon, president of McMahon’s RV, in a press release. “GE joined in our discussions with Camping World to facilitate a possible asset sale and mutual settlement arrangement.”

On April 13, 2014, Camping World Inc. entered into a letter of intent to acquire the assets of McMahon’s RV, which operates dealerships in Westminster, Colton, and Palm Desert. The deal would have enabled Camping World to quickly expand into the Southern California market where McMahon’s RV has a dominant presence. By its terms, the letter of intent expires Saturday (April 26).

“It is clear that McMahon’s RV and GE are working toward finding the right suitor to purchase the company, keeping in mind the best interests of the employees and customers,” stated McMahon. “GE has agreed in principle to make concessions to consummate a deal between Camping World and McMahon’s RV. Given the favorable terms of the transaction, we believe that multiple buyers will be interested if the current deal is not concluded.”

In a report appearing yesterday on RVBUSINESS.com (see related story), Camping World President and CEO Marcus Lemonis questioned whether the deal could be put together, noting, ” … We’re trying to figure out a way to do it and it’s not looking good because the hole – the amount of money it will take to really clean everything up – is so big.”

Upon expiration of the letter of intent with Camping World, McMahon’s RV is able to entertain offers from other buyers. “GE has agreed to afford additional time to locate other suitors in the event the letter of intent expires without a deal,” stated McMahon. “Representatives of GE communicated to me that whoever buys McMahon’s RV will be in a position to ‘print money’ within 15-18 months of closing a deal.”

For additional information contact Adam Obeid, Esq., at adam@megarv.com or (949) 733-3134.

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Camping World’s McMahon’s RV Buyout Stalls?

April 24, 2014 by · Leave a Comment 

  Camping World Inc. President and CEO Marcus Lemonis says the deal that his 90-store Chicago-based RV rolling stock chain has been trying to put together to acquire troubled Southern California dealer McMahon’s RV — once one of the state’s leading RV retailers – is being jeopardized because of escalating costs that have surfaced since Camping World agreed in principle to buy the store.

“We signed a letter of intent about 10 days ago on a McMahon’s transaction and, unfortunately, we’ve put about $5 million dollars in cash on the table to help satisfy the liabilities that exist there – everything you can think of, including out of trust, trade payoffs, sales tax, employee wages, customer deposits, customer warranties, and we thought that was going to be sufficient,” Lemonis told RVBUSINESS.com.

“But two things are happening. One, we’ve been asked to put more money on the table and, No. 2, the hole that we thought existed is significantly larger than we originally thought. I mean, millions larger,” said Lemonis with regard to the Westminster, Calif.-based retailer. “And, you know, my primary goal is that the employees and customers get taken care of. And we’re trying to figure out a way to do it and it’s not looking good because the hole – the amount of money it will take to really clean everything up – is so big. It’s north of $8.5 million.

“That just doesn’t work for us,” added Lemonis, who continues to work with the landlords and manufacturers to close the transaction. “You know, you’re buying into something that’s already in really bad shape.”

As previously reported, GE Commercial Distribution Finance (GECDF) filed suit in early April against McMahon’s seeking a restraining order, claiming the 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 said he figured the $5 million would cover the employees and customers in the planned acquisition, which would have involved leasing McMahon’s real estate as part of a “strategic” move for Camping World.

But he says Camping World, which is working on “six other acquisitions in other markets as well as building seven stores right now,” was unaware of the hidden costs it is now confronting with regard to the SoCal dealership — one of the larger RV rolling stock stores to have survived the recession.

Now, he added, it looks like $8.5 million would have to be spent before Camping World would consider putting “a lick of inventory on the ground.”

Making matters worse, he noted, is the fact that the situation is snowballing.

“As I sit here today, my primary concern is employees who have not been paid and the customers, a lot of whom are calling just all hosed up,” said Lemonis. “I mean, they’ve given deposit money. Their trades aren’t paid off. We have employees going to our stores looking for paychecks and, you know, we don’t own the business. We just signed a letter of intent to try to fill this hole, but the hole is so big I don’t know if it’s possible.”

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.”

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Camping World Moves to Acquire McMahon’s RV

April 15, 2014 by · Leave a Comment 

        Camping World Inc. President and CEO Marcus Lemonis confirmed with RVBUSINESS.com that the company has signed a letter of intent to acquire California-based McMahon’s RV.

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.”

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GECDF Files Suit Against Calif. Dealer McMahon’s

April 10, 2014 by · Leave a Comment 

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.”

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McMahon’s Transports Marines For 9/11 Tribute

September 21, 2012 by · 1 Comment 

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.”

 

 

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McMahon Creates a ‘Recreational Center’

June 1, 2012 by · Leave a Comment 

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.

 

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McMahon’s to Carry Forest River’s Trilogy Fiver

February 29, 2012 by · Leave a Comment 

Forest River's Trilogy fifth-wheel

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.

 

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McMahon’s RV Claims Top California RV Honors

February 16, 2012 by · 1 Comment 

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.

 

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McMahon’s RV Appears in ‘Eye on LA’ Segment

December 13, 2011 by · Leave a Comment 

"Eye on LA" films footage at McMahon's RV

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.

 

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