EarthRoamer files for Bankruptcy

Ed in Montana · 11-17-2009, 11:17 AM

I always liked their custom rigs, but they were pretty pricey compared to a Sportsmobile. It looks like they are going out of business rather than reorganizing.

http://www.bcbr.com/article.asp?id=102765

SMBDAD · 11-17-2009, 12:44 PM

They will be back, but under different name. You borrow to the hilt under one company, build yourself a nice new facility and place it under a different name, then go BK on the money owed. Nice! To have 250,000 in assets and owe 6.8 million, somone new this day was coming and planned well for it! Criminals.

surfgeek33 · 11-17-2009, 12:45 PM

Sad news. I have seen ER's craftsmanship and they exceed most of the RV manufacturer's standard.

Jeffrey · 11-17-2009, 12:57 PM

SMBDAD is so right. Bankruptcy should be illegal, and treated as a crime.

EMrider · 11-17-2009, 02:58 PM

Wow, it only took a few posts before they were slandered and labeled crimminals. Unreal.

Owning and operating a business is about taking risks and sometimes things don't turn out as planned. That is a judgment gone bad, not a premeditated crimminal act. And their lenders certainly knew the risks beforehand....that is a basic part of their job.

It is simple, when you take risks, sometimes you lose. That does not make you a crimminal.

R

Jeffrey · 11-17-2009, 08:59 PM

No, it doesn't . The criminal part is getting away with it. Not having to repay. Screwing good suppliers and lenders.

The business owner just walks away. The lenders and suppliers are now the ones that still have to pay employees and bills. They are getting screwed for doing no wrong. The system is quite f*cked up.

And further, a LOT of business owners are people that have worked for others companies in their respective fields, couldn't hold the job, bounced around from one company to another, would never get rehired, are usually incompetent to do anything correctly or efficiently, and ultimately find themselves unemployable. So, they start their own business, get a contractors license, or whatever it takes, and then provide substandard service to their own customers who don't know it until after they pay the bill. I've been screwed by these types. We all have. Yes, I'm stereotyping, but stereotypes are true!

Then they file for bankruptcy protection. Unbelievable!

billwilson · 11-17-2009, 09:10 PM

Quote:

Originally Posted by Jeffrey

No, it doesn't . The criminal part is getting away with it. Not having to repay. Screwing good suppliers and lenders.

The business owner just walks away. The lenders and suppliers are now the ones that still have to pay employees and bills. They are getting screwed for doing no wrong. The system is quite f*cked up.

And further, a LOT of business owners are people that have worked for others companies in their respective fields, couldn't hold the job, bounced around from one company to another, would never get rehired, are usually incompetent to do anything correctly or efficiently, and ultimately find themselves unemployable. So, they start their own business, get a contractors license, or whatever it takes, and then provide substandard service to their own customers who don't know it until after they pay the bill. I've been screwed by these types. We all have. Yes, I'm stereotyping, but stereotypes are true!

Then they file for bankruptcy protection. Unbelievable!

sterotype probably, but
i know a local guy that is on his FOURTH
start up in 7 years
opens them
does an ipo or brings in investors
skimms the cash
bails when the business plan does not work/sustain the enterprise
the great american dream.......

SMBDAD · 11-17-2009, 10:32 PM

EMrider come on. Not premeditated! I was going by the article you posted. Why would you build a nice new facility (to build your product in) and put it under a different name, instead of putting it under the parent company(who builds the product)? Answer, because you knew the company was going under and did not want the building to be one of the assets that gets liquidated to pay back the people you owe! Instead of paying back the people you owed with the money you spent on the new building, you keep thier money for your own personal gains.

webbmac · 11-17-2009, 10:34 PM

Quote:

Originally Posted by SMBDAD

They will be back, but under different name. You borrow to the hilt under one company, build yourself a nice new facility and place it under a different name, then go BK on the money owed. Nice! To have 250,000 in assets and owe 6.8 million, somone new this day was coming and planned well for it! Criminals.

How is this done? Chapter 7 means total liquidation. If you know, can you please tell me so I can do it? What about the bankers that didn't do the due diligence on behalf of the govt. but collected the fees, leaving the govt (SBA) holding the bag? Shouldn't they be convicted of something if anyone, or at least give the fees back?

**daveb** · 11-17-2009, 10:45 PM

We had a camper builder in town that had a simlilar practice...several bankruptcies over several years. But it was a cheezy company and they did it all the time. Now that's not right! I'm surprised such a high tech company like Earthromer would take such a chance. At the price they ask for a vehicle, I would never put that kind of cash on the line for a vehicle when the company seemed unstable in the past, even once; at least I would be concerned. I'm sorry of that. Maybe it could be an advantage if they restructure into a better company but it would still be in the back of my mind. Several RV companies are having problems but I don't like bailouts.