Tuesday, July 7, 2009

CHAMPION CLOSES ANOTHER FACTORY

The Berthoud facility, a subsidiary of Champion Homes operating under the name Summit Crest Homes, employed as many as 250 in 2007.   Laurie Van Raemdonck, Champion's vice president of investor relations, indicated that about 80 will be affected by the impending closure.   The closure, announced to employees, customers and suppliers last week, will occur once the production on current orders is complete.

Champion


"The Berthoud plant was closed due to a lack of orders to sustain the business, generally as a result of weak housing market conditions," Van Raemdonck explained in an e-mail to the Business Report.


For its fiscal first quarter ending April 4, Champion reported a year-over-year sales decline of 64.5 percent and a net loss of $17.6 million.   However, the company began its cost-cutting initiative last year, so despite the lower sales it reduced its losses by almost 14 percent.   So far this year, the company has idled or closed three plants in addition to the one in Berthoud: Topeka, IN.; Bartow, FL.; and Woodland, CA. The company now has 27 plants in North America and the United Kingdom.

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