Featherlite Update

[Ben]

The ownership of Featherlite has changed a bit. Details below (FYI: I noticed that they have no fewer than sixteen 2007 conversions for sale right now):

10/30/2006
Featherlite Coaches, Inc. announces acquisition

Sanford, FLA. October 30, 2006 –Featherlite Coaches, Inc., a newly formed company, by Conrad Clement, Tracy Clement and Bulk Resources, Inc., has announced the acquisition of the assets of Featherlite Luxury Coaches, a division of Featherlite, Inc. Featherlite, Inc., a wholly owned subsidiary of Cincinnati-based Universal Trailer Holdings Corp, was previously headed by Conrad Clement.

In purchasing the assets of Featherlite Luxury Coaches, Featherlite Coaches, Inc. has acquired one of the nation’s leading Prevost conversion companies, the official coach of NASCAR® and the Featherlite brand of exclusive motorcoaches that is a favorite of racecar drivers, entertainers, sports celebrities and successful entrepreneurs.

“Tracy and I are very excited to be heading up this new company,” Conrad Clement, Featherlite Coaches CEO, said. “In the exclusive world of luxury coach conversions, the Featherlite Vantaré luxury coach is without peer. We look forward to continue to offer luxury coach customers all across North America the same superior products and services that are synonymous with the Featherlite name.

“Because of the continuity of the management team, staff and workforce, we expect this to be an essentially seamless transition,” Clement said. “All of us are dedicated to providing the very best to our customers.”

The brand names “Featherlite Coaches,” “Featherlite Luxury Coaches,” and “Vantaré” are part of the assets purchased by Featherlite Coaches, Inc. to exemplify the uninterrupted transition from Featherlite, Inc.’s luxury coach operation.

Featherlite Coaches, Inc. takes the reins of an operation which employs approximately 300 people. It is headquartered in Sanford, Fla., where its manufacturing, sales and service facilities are located at exit 104 off of I-4 on the north side of Orlando. Featherlite Coaches also will continue to operate sales and service facilities at Mocksville, N.C. and Cresco, Iowa. I-4 Trailers will continue its sales and service operations with Featherlite Coaches in Sanford. I-4 services customers with all models of Featherlite trailers, including the stacker trailer model which is so popular with luxury coach owners.

Neither Featherlite, Inc. nor its parent, Universal Trailer Holdings Corp. is associated with or holds any equity in Featherlite Coaches, Inc.

[dreadnought]

I was told Universal was so eager to dump Featherlite that they paid Clement several million dollars to take it!

[rmboies]

I was told Universal was so eager to dump Featherlite that they paid Clement several million dollars to take it!

By any chance did they give any indication as to "why" they were eager to dump? We have owned two Vantare conversions and have been more then pleased with both so I am curious

[garyde]

I am assuming they don't make any profit. Too many Converters , not enough clients. Costs are going up, prices of Coaches are going up.
Featherlite just introduced a 2million dollar Coach which looked quite bad. So they may need new Market guideance as well.

[rmboies]

I am assuming they don't make any profit. Too many Converters , not enough clients. Costs are going up, prices of Coaches are going up. Featherlite just introduced a 2million dollar Coach which looked quite bad. So they may need new Market guideance as well.

You are likely correct Gary. What I find curious is that at one time, Conrad Clement was Universal Trailers in Iowa. That is also where his Featherlite trailers are manufactured. Hmmmmmmm

I am hoping that the 2 million dollar coach looks better in person

[Ben]

There was also a some legal action going on... here's just a little detail (none is this is my opinion, it's just from other sites... so please don't assume as have something against the company):

As previously disclosed, on August 22, 2006, Featherlite received a summons and complaint in connection with a lawsuit relating to Universal Luxury Coaches, LLC. This complaint was subsequently amended to seek an injunction preventing the sale of Featherlite's motorcoach division to Featherlite Coaches, which is planned to occur following the closing of the merger. Featherlite believes that there is no merit to the claims against it in the lawsuit and no merit to the request for an injunction, and will vigorously defend itself in the litigation. Nevertheless, the closing of the debt financing arrangements referred to above may be subject to receipt by lenders of certain assurances that Featherlite will not be subject to any liabilities arising from this litigation.