An RV dealer files for bankruptcy, this one in Raleigh, North Carolina. USA RV isn’t pulling the pin, but has filed for a reorganization under Chapter 11.
Got his start by “flipping” a used RV
Owned by David Hall, RV USA has been in business since 2010. Hall got his start by buying a used rig, fixing it, and “flipping it” by reselling it for a profit. According to a story published by Triangle Business Journal, this isn’t Hall’s first issue with tough financial problems. Hall also owned an RV operation in Greensboro, NC, which he has since closed. He told the media outlet that there were several factors in his business trouble.
Surfed the wave of pandemic buying—now RV dealer files for bankruptcy
Like many RV dealers, RV USA surfed along with high waves of RV purchases associated with the COVID pandemic. But when the “waters” retreated, the business struggled, and Hall himself got caught in a wave of substance abuse. In the summer of 2023, the seven-person operation was moving about 20 RVs off the lot per month. He says his sales at that time were at about $8 million (year-to-date), and claimed a 20% profit margin. But things have gone sour, and at the first of this year, he filed for bankruptcy.
When the RV dealer filed for bankruptcy, the filing showed USA RV’s gross revenue in 2022 was just over $13.4 million. 2023 brought in just over $8.9 million. Listed assets were approaching $2.9 million, which included 42 RVs, with a listed value of $1.9 million.
On the other side of the balance sheet, a broad range of creditors hold claims against the company: $15,000 for advertising, lease payments owed to Tesla amounting to $13,000, and credit cards – “tens of thousands of dollars-worth.” Several banks are in line, as well, with one to the tune of $300,000 claiming “all assets of the debtor other than titled vehicles and deposit accounts.”
##RVT1138b
Maybe a good opportunity for Camping World to take him over !😁
I hope you’re joking. Just what we need. Another unscrupulous dealer ship.
I’m sure it was said with tongue firmly in cheek, Bob.😉 Have a good afternoon/evening. 😀 –Diane at RVtravel.com
Absolutely just joking Bob !
I can’t help but think that Camping World has worked themselves into a similar hole. Pass by any of the CWs that sell RVs and they have trailers to the horizon. I really have my doubts that they can sell them all. I wonder if the dealerships that they have purchased were for less than asset value thus providing a boost to debt ratio.
Thank you, Russ and Tina! Very sad, especially for the employees, but the information here implies that at least some of the problems were self-inflicted.
Several years ago I had a dealership jack me around on warranty work. My comment to the owner was “ when the selling of the RV’s slows down you will be more dependent on your service department to keep you afloat however it’s bad reputation for service will sink you”
I’m willing to bet that the dealer sold/scammed numerous customers with quick, cheap fixes on his inventory and lived the “high” life during the pandemic.
‘Hall himself got caught in a wave of substance abuse’… enough said.