Greg Gerber posted on May 02, 2008 08:35
ONTARIO, Calif. – Motorhome and luxury fifth wheel manufacturer Alfa Leisure announced they have ceased operations as of April 30, according to a statement posted today on the company's website. The shutdown will impact about 150 employees.
“This is a sad day for Alfa Leisure and for the RV community” stated founder and CEO Johnnie Crean, “We gave this company our all, fought tooth and nail and in spite of a Herculean effort, could not overcome the financial headwinds that continue to plaque our industry.”
Known for RV designs that bucked most trends and tended to focus on the genuine enthusiast, Alfa had attracted a loyal following and was in the midst of a turnaround that under different circumstances might have produced far better results. Ongoing challenges with key supplier Crane Composites further exacerbated the situation.
“Alfa has been fighting an uphill battle and the final straw was certainly Crane’s unwillingness to stand behind their product” stated Crean. “We’d like to thank all of the owners and dealers who over the past thirty five years have been our catalyst and our inspiration.”
Crean went on to say that about 90 days ago, the company brought in a high powered new management team to try and save the firm, but it was too late. The Crane issue quite simply became insurmountable, Crean said.
There are currently no plans for additional operations and the company shutdown is just one of a growing number of RV manufacturers that have closed their doors. As housing values have dropped, many potential buyers have lost the equity in their homes they had in the past used to purchase big-ticket items.
News reports are just beginning to surface regarding Alfa Leisure's unwillingness to pay its creditors amid news that a key executive purchased an expensive home shortly before the closure was announed. RV Industry News will stay on top of the issue and present updates as they become available.