Fleetwood Files for Chapter 11 Bankruptcy

Fleetwood Enterprises Inc., Riverside, Calif., has filed voluntary Chapter 11 petitions for itself and certain operating subsidiaries in the U.S. Bankruptcy Court for the Central District of California.

Fleetwood said its motorhome and manufactured housing businesses will continue to operate while the company seeks buyers for these business units. While Fleetwood said it believes it has sufficient cash to operate its businesses in the immediate term, the company is in discussions with its senior secured lenders for new, debtor-in-possession (DIP) financing to supplement existing working capital. As of Jan. 25, the company said it had bank cash of about $23.0 million.

The filing also facilitates the closing of Fleetwood’s travel trailer division, which the company is in the process of shutting down. Fleetwood said the division accounted for losses of $65.3 million in 2007 and $16.8 million in 2008. The division closing affects three manufacturing facilities and two service facilities employing about 675 people. The company also is laying off an additional 65 corporate employees.

Fleetwood’s actions come after two other large Oregon-based RV manufacturers, Country Coach and Monaco Coach Corp., were placed in Chapter 11 bankruptcy in early March.