RIVERSIDE, Calif. - Bankrupt Fleetwood Enterprises will sell some of its manufactured housing assets to an Arizona-based manufactured housing company and its investment partners.
Cavco Industries and Third Avenue Trust Value Fund through FH Holding, a jointly owned corporation, have offered $21.8 million for seven factories that employ about 700 people, as well as an office building, inventory, trade names, contracts and leases.
The sale doesn't include Fleetwood's Pendleton plant, which made trailers and employed 253 people until the company shut down production and declared bankruptcy in March. Fleetwood also let go of 160 employees who worked at the company's La Grande manufacturing plant.
Fleetwood spokeswoman Sydney Rosencranz said the sale does include the plant in Woodburn, Ore., which employs 89 people. Fleetwood had announced plans to close the plant by Aug. 31 if the company couldn't sell its manufactured housing division.
Cavco and company are the highest bidders in an auction held by beleaguered Fleetwood. In addition, Cavco agreed to buy Fleetwood's idled Woodland, Calif., plant for $4.8 million.
The Bankruptcy Court of California still has to approve the sale. The court will hear the proposed sale today at 1:30 p.m. in Riverside, Calif.
Rosencranz said Fleetwood continues to seek buyers for all of its assets, but there are no announcements at this time concerning its Pendleton plant or other facilities.
In May, Ron and Sherry Nash, owners of Northwood Manufacturing in La Grande, purchased the Fleetwood plant there for $2.05 million and started a new company, Outdoors RV Manufacturing, at the site.
Outdoors RV has hired about 100 former Fleetwood workers, including Jim Croxton as the general manager, a role he had held at the Pendleton Fleetwood plant. The new company last week delivered its first travel trailer to Thompson RV in Pendleton.