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Thompson Turned Disappointment into Success

November 18, 2009 by · Leave a Comment 

 

Wade Thompson

Wade Thompson

In the midst of a business downturn for recreational vehicles in 1980, Wade Thompson purchased an iconic but failing brand, Airstream, and turned it into a money maker within a year.

Mr. Thompson, who died Nov. 12 at the age of 69, went on to add a dozen RV manufacturers to the roster of Thor Industries Inc., which became the nation’s biggest RV manufacturer by sales.

The RV industry went through another downturn starting in 2007, when a sharp rise in oil prices was followed by recession. Thor closed factories and cut jobs, but stayed profitable even as leading rivals filed for bankruptcy, according to the Wall Street Journal.

“As long as there’s a Grand Canyon, there will be an RV industry,” Mr. Thompson was fond of saying.

Once a fragmented industry populated by small companies, RVs became big business with Thor. In 1986, the company was listed on the New York Stock Exchange, and it had sales of $3 billion in its peak year of 2006.

Mr. Thompson and his business partner, Peter Orthwein, were specialists in finance rather than manufacturing. They ran the companies from offices in New York and Connecticut rather than their manufacturing base in the Midwest.

They retained the individual identities of the companies they acquired, including Dutchmen Manufacturing Inc., Four Winds International and Keystone RV Co.

The brands have their own manufacturing facilities — many in the Elkhart, Ind., area, that is often called the world’s RV capital — but they benefit from centralized procurement and finance operations.

“By putting many successful companies under one parent, they have changed the face of the RV industry nationwide,” says Allen R. Hesselbart, a historian at the RV/MH Heritage Foundation Inc., a museum in Elkhart dedicated to RVs.

Raised in Wellington, New Zealand, Mr. Thompson as a boy dreamed of living in New York City, which he knew only from photos in an old family encyclopedia. His father operated a metal shop, and Mr. Thompson excelled in school and at sports.

After college, Mr. Thompson made his way to the U.S., where he studied business at New York University while working as a salesman at Brooks Brothers, the men’s clothier. After graduation and in deference to his father’s wishes, he returned to New Zealand to open a clothing store in Wellington, to be called Shirtmasters. But after customs officials refused at first to allow him to import a crate of new Gant shirts from the U.S., Mr. Thompson decided to leave New Zealand.

“I couldn’t live in a socialist system like that,” Mr. Thompson told the Dominion Post, a New Zealand newspaper, in 2004. “I thought, how in the world can this system work here?”

Settling for good in New York in 1967, Mr. Thompson worked in the acquisitions department of Sperry & Hutchinson Co., the makers of green trading stamps distributed as premiums by supermarkets. Eager to have his own business, he tried other ventures, including owning a pair of Orange Julius franchise juice bars in New York’s Times Square area.

In 1977, Mr. Thompson teamed with Mr. Orthwein to buy the Hi-Lo Trailer Co., a small Ohio-based manufacturer of campers. Three years later, they purchased Airstream Inc. from Beatrice Foods Co., which was seeking to unload underperforming assets during a restructuring. The partners named their new company Thor after the first two letters of their last names, but kept the iconic brand name. Airstream went from a $12 million loss in 1979 to a $1 million profit the next year.

More comfortable in his offices atop New York’s Grand Central Station than at Thor’s official home of Jackson Center, Ohio., Mr. Thompson relished life in New York. He became a frequent presence at art auctions. Among his purchases was an Andy Warhol depiction of a pane of S&H Green Stamps that Mr. Thompson bought for $5 million in 2006.

Mr. Thompson also championed the restoration of the Park Avenue Armory, a Victorian edifice on Manhattan’s Upper East Side that was transformed into one of New York’s largest theater and exhibition sites. He donated $35 million to the project, and at his death was chairman of the nonprofit organization spearheading the renovations.

Mr. Thompson never owned an RV, but he did drive one during a 2005 trip to southern Utah, say family members.

Although one of his companies produced an RV known as a Land Yacht, Mr. Thompson preferred to zip around in a red Mini Cooper.

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New Zealand Press Reports on Death of Native Son

November 16, 2009 by · Leave a Comment 

Skyline of Wellington, New Zealand, hometown of Wade F.B. Thompson

Skyline of Wellington, New Zealand, hometown of Wade F.B. Thompson

Editor’s Note: Here is how The Dominion Post, a Wellington, New Zealand-based newspaper, reported on the death last week of New Zealand native Wade F.B. Thompson. The headline read: Kiwi motorhome tycoon dies in US.

Wade Thompson, a Wellington-raised and educated motorhome tycoon, has died of cancer in the United States, aged 69.

One of the most successful New Zealanders in business overseas, Mr. Thompson was an old boy of Rongotai College and graduated from Victoria University in Wellington in 1962.

He came close to billionaire status as founder and part owner of Thor Industries, the world’s biggest recreational vehicle maker, based in the U.S.

Thor never lost money in all its 30 years and turned sales of more than US$1.5 billion (NZ$2b) in the past financial year.

In 2004, Mr. Thompson appeared on the cover of prestigious Forbes business magazine in the US as “Lord of the Rigs,” a subtle play on his Kiwi background when “Lord of the Rings” movies were all the rage.

It was a long way from riding a rusty old bike from the eastern Wellington suburb of Strathmore to school in Rongotai.

Old school friend and Wellington businessman Bryan Johnson arrived back in Wellington yesterday after visiting Mr. Thompson last week, just before he died. “He just went down very quickly in the last couple of weeks,” Mr. Johnson said.

Mr. Thompson had been a huge success as a businessman in the U.S.

Thor is worth about US$2b on the sharemarket and Mr. Thompson owned about a third of the firm, making him worth about NZ$800 million and putting him near the top of the New Zealand rich list.

“He has also given huge amounts of money away to the city of New York and various projects,” Mr. Johnson said. “He was determined, full of business integrity, but absolutely driven to be a success. He was a great man.”

Mr. Thompson died of cancer late last week. The disease was diagnosed 14 years ago, his company said.

He devoted the past decade to helping find a cure for cancer, founding the “Drive against prostate cancer” in 2000.

It involved two of Thor’s Airstream travel trailers used as mobile medical vehicles to give more than 100,000 free prostrate checks. He was also a big contributor to various cancer programs.

After graduating from Victoria University, Mr. Thompson went on to do a master of science in retailing at New York University in 1965, courtesy of a loan from his old employer in Wellington, men’s clothing shop Vance Vivian.

He returned to Wellington, but soon left, disgusted with the red tape of a “socialist system” of government licensing that almost prevented him from bringing in business shirts to sell.

A customs officer threatened to dump $10,000 worth of shirts in the harbor unless he got a licence. “I took it very personally,” he said in an interview with The Dominion Post in 2004.

“I thought how in the world can this system work here?”

Mr. Thompson founded Thor in 1980 with American Peter Orthwein, its vice chairman, with the acquisition of Airstream, the renowned travel trailer builder.

The first two letters of their last names combined to form Thor.

Mr. Thompson is survived by his wife, Angela, also a New Zealander, from Blenheim, whom he met in New York, and their two children.

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