California’s Fleetwood Enterprises files Chapter 11

(03-10) 14:20 PDT Riverside, Calif. (AP) –

“RV and manufactured housing builder Fleetwood Enterprises Inc. filed for Chapter 11 bankruptcy protection Tuesday, citing unprecedented credit restrictions affecting dealers and customers following three years of restructuring as market conditions worsened.

The Riverside-based company said its motor home and manufactured housing business will continue to operate while it seeks buyers for those business units, but it will close its travel trailer division.

The division accounted for losses of $65.3 million in 2007 and $16.8 million in 2008. The closing affects three manufacturing facilities and two service facilities employing about 675 people. The company is also laying off an additional 65 corporate associates.

“Although we made substantial progress in restructuring this division and improved the product offering, current market conditions proved too severe to continue the turnaround,” Elden L. Smith, Fleetwood’s president and chief executive officer, said in a press release.

Fleetwood, which employs more than 3,000 people in 15 plants in 10 states, filed petitions in U.S. Bankruptcy Court in Riverside for itself and certain operating subsidiaries, but not any of its foreign or non-operating entities.”

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