Tuesday, May 10, 2016

Rocky Mount Modular Home Building Company Could be Bought, Manager Hope

From an article in The Roanoke Times
The parent company of Excel Homes of Virginia, a manufacturer of modular homes in Franklin County, VA also known as Mod-U-Kraf Homes, has closed, eliminating from 150 to 219 jobs in Rocky Mount, according to a filing with the state.
Mod U Kraf Factory in Rocky Mount, VA
Innovative Building Systems filed notice with Virginia officials May 3 that it would begin terminating workers as early as May 3 and ending by May 13 at the plant located at 260 Weaver St. in the Franklin County-Rocky Mount VA Industrial Park.
The company “has been unable to obtain the necessary financing to continue its operations or negotiate a successful sale of the company to a going concern,” according to the letter filed to meet requirements of the Worker Adjustment and Retraining Notification Act.
Innovative Building Systems and its affiliates in several states, including Virginia, intend to file Chapter 7 bankruptcy, the letter stated. Chapter 7 usually leads to liquidation of a company.
Dan Hobbs, general operations manager for Excel Homes of Virginia, said the Rocky Mount company has been doing well, and that the financial problems rest solely with the parent company.
The company’s filing indicated 219 jobs would be eliminated. Hobbs said the number is closer to 150.
“This facility here in Virginia has been profitable for the last five quarters — for each quarter in 2015, as well as the first quarter of 2016,” Hobbs said. “The financial difficulties of Innovative Building Systems come from some factors outside of Virginia.”
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9 comments:

Anonymous said...

Why would Champion buy them out before they go into Bankruptcy? They could come back and buy it from the bank for pennys on the dollar. i think champion would be smart enough to realize that seeing that they have done it before. Hence i think it will be a while before champion buys excel.

Anonymous said...

Coach:
Heard the Champion just bought IBS and heard that some people in MKraf will be called back.

Anonymous said...

And that's what they are gonna do. Hopefully sooner rather than later.

Anonymous said...

You also have to remember that it's not just the excel brand.

Anonymous said...

If Champion reopens Rocky Mount remember it has its own recognized brand that has a solid reputation in the Carolinas and could result in splitting the modular and manufactured operations again.

Unless Liverpool is more efficient than Champions operations in PA not sure that plant is on the table.

Harry said...

Coach,
I see these companies / brands still have banners running across the top of your web page. I sure hope you got paid to advertise for them.

Coach said...

I will leave them up until they officially are no longer viable which could be any day now.

Ibgreen said...

I did notice that the Handcrafted Homes website was pulled several days ago. My suspicions are that the brand is officially dead.

Anonymous said...

Look at IBS press release closely... Reading between the lines, I believe that the real estate, including facilities, has different ownership than "rest of business". The devil is always in the details. Champion is sophisticated buyer, so I am sure they have done the appropriate due diligence.