Has Steve Adams sold out?
How does this work? You own three companies. You sell one of the companies you own to another company you own and you pocket $131.8 million in the process. But, now you own two companies instead of three. Hmmmmm. That’s pretty much what happened yesterday when Affinity Group announced it had “sold” Camping World to Freedom Roads. Affinity Group’s latest annual report shows that Stephen Adams owns 1,407.2 shares or 97.41 percent of the company’s common stock, and Adams’ family members own another 37.5 shares or 2.59 percent of the company. In announcing the sale, Affinity Group said it would use the $175.8 million it received from the sale of Camping World to pay off all the debt Camping World owes to Affinity Group. Once that the debt is paid off, $131.8 million remains. That means Adams will pocket $128.39 million and his family will net $3.41 million. Nice! The deal calls for Affinity Group to receive nearly $132 million in cash at closing with the rest to be paid under a promissory note at 11.5 percent interest, or about $5 million per year in interest alone. At least that’s slightly better terms than a payday loan with Check Into Cash.
Here are some interesting facts regarding this “deal” and Camping World in general:
- Freedom Roads just paid $2.476 million for each of the 71 Camping World stores currently in the franchise.
- Last year, Affinity Group generated $290.4 million in retail sales, 71 percent of which came from the 63 Camping World stores it owned at the time — or $3.27 million per store. The rest of its retail sales came from catalogs, the Internet, service work and supplies.
- It looks like Freedom Roads may have made a great buy, except that same store sales were down 3.5 percent in 2006.
- Camping World owns a proprietary mailing list of about 2.4 million RV owners, all of whom have made a purchase or requested a catalog from the store in the past 5 years.
- Camping World distributed 8.9 million catalogs in 2006 which generated 317,000 catalog orders with an average sale per order of $116. In other words, only 3.6 percent of customers who received a Camping World catalog last year placed a $116 order.
- None of Affinity Group’s executives or senior managers own ANY stock in the company, as of Dec. 31. That means nobody but Adams and his family have an ownership stake in Camping World, Freedom Roads, TL Publications, Woodalls, Coast to Coast, RV.net, Good Sam or any of the other firms that make up Affinity Group.
What strikes me most about this deal is the appearance that Steve Adams may have finally found a way to cash out of the RV industry. At 69 years of age, Adams certainly has his eye on retirement. He may have retired earlier, but in 2003 he lost a considerable sum of money when Holiday RV Superstores went bankrupt. For years people speculated that Adams was aggressively looking for a way to recover the millions of dollars he lost in the Holiday venture. I would get reports about AGI executives traveling to Wall Street in what everyone thought was an attempt to take Affinity Group public so Adams could parachute out of the RV business. Apparently, that idea was unable to gain any traction within the financial community. Then Affinity Group tried to sell RVs at its Camping World locations, which was met with widespread opposition within the industry. So, AGI developed a new plan to wedge its way into the RV market by purchasing existing dealerships and opening a Camping World retail outlet at every location. Thus, Freedom Roads was born. The RV industry was formally introduced to the plan at the 2003 National RV Show when AGI, in an RV Business “exclusive” article with the owner of their company, admitted it was “buying up a number of large U.S. RV dealerships in an effort to build a national retail network unlike anything the industry has seen before.”
Basically, Freedom Roads bought out some of the best run RV dealerships in the nation, giving cash to the entrepreneur and allowing him to lease the property back to Freedom Roads. The company retained the entrepreneur on “staff” for anywhere from a few weeks to a few years, before replaced him with a manager. Freedom Roads currently owns 58 dealerships covering 117 locations. Since the Freedom Roads concept was introduced, people have speculated on what would happen when the entrepreneurial spirit and “ownership” mentality at the bought-out dealerships was replaced with salaried managers and a “managerial” mentality. That business model certainly hasn’t worked in this industry before as Holiday RV World, Fleetwood and Coachmen all discovered a few years ago. In fact, other than convenience store chains, I don’t think it has worked well in any other industry. Almost immediately, several entrepreneurs started resenting being corralled into a management position and a few were even fired from their own dealerships. In fact, several former Freedom Roads dealers have started or are planning to start dealerships to compete with their former companies. Today, the Freedom Roads/Camping World business model is as fragile as many people imagined it would be. Both entities are now under the control of 33-year-old Marcus Lemonis, who serves as president and CEO. According to the Affinity Group’s annual report, “From 2001 to 2003, Lemonis served as president, chief executive officer and chairman of the board of directors of Holiday RV Superstores, Inc. Holiday RV Superstores, Inc. filed for bankruptcy on October 18, 2003.”
With Holiday RV Superstores, all power was consolidated under a 30-year-old with lots of book smarts but little practical experience in running a multi-faceted business. The result was disastrous. Now the same guy is in charge of single entity that controls 117 dealership locations and a $290 million retail empire where same store sales are declining — and the parent company’s only stockholder and truly vested owner just cashed out nearly $132 million by combining the two companies. With $132 million in his pocket and $5 million coming to him every year in interest, does Steve Adams really care what happens to the company he controls or the impact it can have on this industry? Look for a formal retirement announcement soon. Then, with the entrepreneurial spirit and “ownership” mentality at AGI replaced with a managerial philosophy and an unproven business model, who knows what will happen.
Stay tuned folks! This tale promises to turn into a cataclysm.
June 3rd, 2007 at 7:31 pm
I think this one has gone dry Susan. You can bet there will be other news from AGI and their affiliate companies. Keep an eye on the Route 66 dealer network, they are doing a tremendous job of organizing their resources and developing effective marketing and support campaigns that allow them to compete with FreedomRoads and yet retain their individual dealerships and entrepreneurial spirit. I like everything they are doing and think dealers that opt for this group - if they are accepted - will not regret their decision. I know they have a high revenue threshold for membership and think the industry needs something just like this but for dealers that have revenue under $10,000,000 or $5,000,000 dollars a year.
May 14th, 2007 at 10:43 pm
Geez, where is everyone on this post. No one has had fun in weeks bashing FReedom Roads, Camping World or Marcus Lemonis. Lets get this started. Bob and Greg must be on vacation. Come on BOB lets get going here, any more scoop.
April 27th, 2007 at 12:31 pm
Bob… Thanks for your response. I was pleased to read that you have significant research and interview material from which you draw your conclusions.
I normally do not get involved with bulletin board threads, but the banter here and at another location motivated me to respond.
Companies like Freedom Roads and LaMesaRV (9 stores) are setting the stage for getting control of the manufacturers who really want to control how we do business. As the buying power increases, so does the control of pricing and especially back-end spiffs which threaten to undermine management’s control of the sales force.
Our business is changing and those who have their finger on the pulse of our business will succeed.
One of the benefits that may be realized by Freedom Roads’ expansion is that a uniform methodology could be implemented whereby any employee could transfer to any other store and not have to “re-learn” how the alternate location conducts business. If everyone speaks the same language and universality exists at every location, upper management can more easily implement new programs as the RV marketplace matures.
Competetors can learn from these new formulations and the entire marketplace will benefit.
There is always a possibility of a cooperative of smaller dealerships forming to compete with the larger dealerships’ buying power.
The speculations are endless, but I can say with great confidence that we, as an industry, are on the verge of a boom that we have not seen since the early ’90s.
April 27th, 2007 at 6:13 am
I applaud EJ’s comments and sales success … he gets it! This is exactly what we have been promoting on this thread. Distinguish yourself in the marketplace, sell value and build relationships. He obviously does this very well at La Mesa.
This does not mean that we don’t think FreedomRoads/Camping World can’t do the same thing, but there are those of us with different opinions who are not afraid to express them. We have given full credit to Steve Adams intelligence, financial expertise, and business acumen … he didn’t establish the AGI empire without working hard and long to establish a giant corporation in our industry. The question for all of us is whether this strategy, and company, will be good for the RV industry in the long run. The jury is still out on that and there will be many different opinions expressed on this topic as they continue to grow and expand. Only time will tell who is right, but some of us have tried to document reals statistics from publicly available reports and compare this activity to other examples in different industries that we have experienced personally and noted the results.
While it is nice to have Bank of the West (Robert) contribute to the blog, are his comments potentially slanted by the amount of business they may, or may not, enjoy with Freedom Roads/Camping World.
For the record, again, I do know, have met, and have interviewed Marcus Lemonis. He also has contributed on some of Greg’s blogs and if he felt the need to jump in on this one I’m sure he would do so. Of course he is always welcome. This intereactive exchange of industry ideas. stories, comments and even arguments is designed to stimulate more conversation, not less. I hope many of the people that view the blog, but never contribute, will now decided to join in after seeing the activity that this one has generated.
We do not dislike, nor do we disrespect, anybody that contributes to the blog. There may be sharp responses but I suspect we all have thick skin, enjoy the banter, and will continue to respect the varying viewpoints presented here.
I do not consider many of the “comments” on here as personal attacks, especially when they deal with the companies serving our industry. However, the information is accurate, is being provided by people (for and against the argument) that are actively involved in the industry, and the shared responses help us all understand and appreciate the complexities of the business dynamics that are impacting our industry today. The most talked about one is the continued expansion of FreedomRoads/Camping World and its eventual positive, or negative, impact on the rest of the industry. As we have seen here, you can make an argument on either side of that discussion speaking just for me, and not for Greg or any other contributer, I enjoy and appreciate both viewpoints and love the exchange, even if it does get testy at times.
April 26th, 2007 at 7:08 pm
I agree with EJ. There’s no reason to compete with the bottom feeders for price based sales. And, I use the word “compete’ loosely because it takes no skill or business sense to mail a catalog, or open a store, that sells the lowest priced products. All you have to do is assume all your customers are stupid and all they will look at is the price tag.
April 26th, 2007 at 6:40 pm
Congatulations Greg… You have stimulated readership and response by your controversial judgements. Are you marketing or are you really serious?
Have you heard the expresion, “There are them that do and them that talk”? Do you, as a journalist, really understand the complexities of leading an organization as immense as Freedom Roads/Campingworld/RVs.com?
It is so easy to criticize, but if you really wish to judge, please do not make “leaps to judgement” without interviewing and researching the content that you publish as “ASSUMED” realities. Read your own article and you will know exactly what I am referring to.
April 26th, 2007 at 5:33 pm
Bob,
Thanks for clarifying what a great speller you are. I find it amazing that both of you continue to spend your time bashing people. Seperate from you bashing Camping World and Freedom Roads, along with other companies, you make personal attacks on others. I note that business attacks on companies like Fleetwood and National in addition to others are good solid editorial comments just point out global business perspectives. Attacking people and their personal character is just not right. I dont know Marcus Lemonis like you say you do, but I am not sure I believe you do. Why would anyone talk to you after you and Greg say the things you do about them. I understand that all parties are entitled to their opinion about life but we just dont need to get personal. If you know someone well you ussualy dont bash them and if you do you wont know them for long or have conversations with them.
Even though you pointed out you have a job, like we all do, you still should spend your free time telling people positive things about others. It is a much better use of time and probably a much better thing for the industry. I have to believe that all that happens in these cases is you fuel the fire. Maybee we should call FreedomRoads and get their perspective. Do you think they would reply.
Maybee you should contact your good friend and ask him to respond if he respects you so much.
Bob and Greg, I am sure you are nice people. Most people are. Just try to be a better person or at least keep it to yourself if you dont have something good to say. It would make you feel better.
April 26th, 2007 at 5:33 pm
We live in a world of of envious observers and gossipers!
Our economy is capitalistic and based on free enterprise. If Marcus Lemonis has conceived a vision of being the Sam Walton of the RV industry, nothing can stop him.
You should recognize that Freedom Roads is a “vision” backed by a plan which is executing before our eyes.
I personally believe that the expansion of Freedom Roads and the unification of its buying power is going to do good things to our industry. Not a subject that I would discuss in a public forum.
If you are worried about competing at the “price level” then you do not understand the dynamics of selling big ticket items.
I am the top salesman (companywide) at LaMesa RV. I have written a book “Power Selling for RV Professionals” and I constantly sell to customers who were quoted lower prices elswhere. A big ticket item will never be sold as a discount priced commodity. There is a methodology that is powerfully persuasive and the growth of Freedom Roads has no impact on your ability to profit in the coming times.
In the end you might be able to hold a higher gross because there may be fewer desparate small shops selling at shallow margins over pure.
April 26th, 2007 at 12:31 pm
Larry, I thought competition is exactly what we are discussing. Competing includes a strategy. Or, it should.
The competitive strategy I am suggesting for RV dealers is to differentiate themselves by selling brands OTHER THAN the brands sold through Camping World/Freedom Roads.
And, yes, I work in the industry every day. I have owned an RV dealership AND I talk to dealers and customers for a good portion of my day.
I agree that competition is great for customers. But, continuing the blind compliance with the norm is just foolish.
Purchasing and selling the same old products as every other dealer (ie-Camping World) is not competing for the sake of customers. It is lazy business that many like to attempt to disguise as competing.
April 25th, 2007 at 10:45 pm
Larry,
Your comments and personal attack on Greg and me are unwarranted - but since you asked:
1. Yes, I have a job, in a different industry, and do quite well at it.
2. I am also the former editor of RV News magazine and have been writing, speaking, and consulting in the RV industry since 1996.
3. YOUR employer has had me as a featured speaker at your annual dealer meetings in the past and my presentations and industry knowledge were well received by YOUR customers.
4. I have also done stories on your chairman, your top executives, and your company in the RV trade press.
5. Contrary to your opinion, I actually do know what is going on in YOUR business, and in this industry. I have been an active RVer for over thirty years. I actually buy these products, use them, and understand them.
6. I have met, interviewed and reported on Camping World and FreedomRoads executives. In fact I just spoke to Marcus Lemonis a few weeks ago and we have respect for each others differing viewpoints on the topics we have discussed in this thread.
7. I’m not going to repeat what we have all contributed here, but there is an economics lesson in there .. see if you can find it.
8. That should do it … oh yes, I have to leave now, I’m late for my spelling, grammar, punctuation, and writing class!
April 25th, 2007 at 9:20 pm
I have been trying to post this all day but the system has not accepted it. Hope this goes through
I am glad that most of you are know starting to realize the facts. For years, freedomroads has been beat on and will continue to be by most of us. We realize that the beating does nothing but make us feel better. Has anyone noticed that they dont fight back? Has anyone noticed that they just continue to go about their business and everyday we read about a new aquistion or a new store opening. Can this be stopped. Does it need to be. Is it possible that it is just making us better? Maybee in the end the good dealers will be better and the bad dealers should not be around anyway. We all know that taking care of the customer is what we should be doing. I noticed that the dealer in arizona sold to them. Good dealers continue to sell for whatever reason. Most of the staff is still there. I know that most of the owners are not, that is why they sold. Did anyone think they would stay forever? Again, these guys will beat you but I dont think they wake up in the morning with some strategic plan to do so. they just execute their plan. I hope they dont come to my town. I may have to sell my store. It seems easier and what the heck, I love the bahamas. I do believe that they will take care of the bulk of my employees.
Good luck
P.s. does anyone know when the weather will warm up. maybee that will be what helps our business. Can freedomroads help with that. IF so, Im in.
April 25th, 2007 at 9:16 pm
bob,
do you actually have a job?
Get a life. Maybee you could get a job at rvtrade digest, they must be looking to hire someone to replace Greg or at least they should. You guys have no idea what is going on in this business. Plenty of my dealers are doing just fine and will continue to do so regardless of how many stores these guys open. Have you ever meet anyone from camping world or freedomroads because I have and they were just like you and me, they put their pants on one leg at a time and they have wives, husbands and kids like you and I. I know we compete with us but plenty of companies compete with civility with each other. Study the economy, competiton is good for busines because its good for the customer. That is all that matters.
April 25th, 2007 at 7:28 pm
Please allow me to add a postscript to Sean’s excellent, and very valid, argument for the dealers to ponder.
As you feed this beast the money will fund more FreedomRoads acquisitions. FreedomRoads gets bigger and starts making the same kind of demands with manufacturers that Camping World demands of their suppliers.
FreedomRoads starts buying product at higher margins and sells it to consumers at prices you can not afford to sell at. You get frustrated and start to meet FreedomRoads pricing as many dealers have done with Camping World prices.
Your margins start to drop. The value of your dealership starts to drop. When, and if, you decide to sell to FreedomRoads they will extract the last pound of flesh left on your bones as they devalue your company because you are not making the same profit as their dealers.
Well of course you are not because Camping World is buying at better pricing (we’ve heard that tale of woe from many suppliers) and if FreedomRoads is doing the same thing, then shame on the dealers in this industry that is feeding the monster that is going to devour them.
As Sean said, “Why would you even consider selling a product manufactured by a company that sells its product through Camping World?” Think about that the next time you visit with your accountant and wonder why your bottom line may be going in the wrong direction. You, and only you, have the ability to turn this all around. The real question is; Will you do it?
April 25th, 2007 at 4:23 pm
Let’s take a look at how the money flows now…
RV suppliers get there butts beat by Camping World to sell the product at lower than distributor pricing.
The additional margin supports the Freedom Roads/Camping World business by allowing them to sell at a lower price.
Can I ask the dealers here a question?
Why would you even consider selling a product manufactured by a company that sells its product through Camping World? By selling that manufacturer’s products you are putting money in your Freedom Roads competitor pocket. If that manufacturer can sell to you at a higher price it’s easier to bow down to the Camping World/Freedom Roads discount.
Is your dealership a Freedom Roads dealership without you even knowing it?
If you are selling a product sold in Camping World you are subsidizing the Camping World buying power through the wholesale price you are paying for the product.
And, now, you are subsidizing your competitor’s bottom line.
April 25th, 2007 at 6:04 am
Now that’s an enlightening commentary Larry. So everyone should sell to them or roll over and play dead? This discussion thread deals with the overall health of the RV industy and whether or not such a roll-up, by a company that owns just about everything in the RV industry, is good or bad for this industry!
Nobody said that AGI or the new Freedom Roads/Camping World entities were stupid, in fact we’ve said just the opposite. But that doesn’t mean that having a company as large as AGI, that can control an entire industry, or having a company that controls so many dealerships and parts/accessories stores, is going to be good for the entire industry in the long run.
History is replete with case studies of companies that grew so large, controlled their industries, and evetually collapsed under the weight of their own organization inefficiencies and greed. We are not saying that AGI/FreedomRoads/Camping World are doing anything wrong, but is this story going to play well in the next five years given the challenges they may face from elements outside their control.
When large entities fail … and they do fail … they take many innocent victims down with them, such as manufacturers they control, suppliers that have a large majority of their business invested in one entity, and the impact on thousands of people who find themselves out of work through no reason of their own doing.
I’ve always said that the smartest people in this tangled web are the dealers that sell out, sit out, and open up again after they have met their contractural obligations of their non-compete agreement. These are the reall entrepreneurs that know how to build a business, service their customers, provide an enjoyable work environment for their employees, and have mutually beneficial relationships with their manufacturers and suppliers.
The jury is still out on whether or not these conditions will be achieved in an entity such as FreedomRoads/Camping World.
Your last line is the only thing that makes sense in your response. AGI and FreedomRoads/Camping world have been doing just that for several years now … poking the stick in the eyes of the RV industry and everybody has sat by and watched it happen. They’ve been the bully in the playground and everybody else sits on the sidelines and says/does nothing. We all know the ending to that story … when they’ve had enough somebody has the guts to do something and the bully goes home crying.
The final chapter of this story is yet to be written, but I can tell you this, the answer isn’t to give them another stick to beat you up with or to sit idly by and watch it all play out and complain about it. This entire argument is about the impact and result of all this activity on the entire industry, and I don’t think that the majority of people honestly believe this is all good for those most impacted by this business acivity … and that’s the manufacturers, suppliers and distributors that have been poked in eye over and over again and then hand them another stick to do it again.
April 24th, 2007 at 9:03 pm
It is amazing to me that you guys continue to write this kind of stuff. Does it look like these guys are dumb? It seems that most if not at least gerber has too much free time on his hands. This company just continues to grow while others sit and wait for them to fail. They wont. Good people, good process, its that simple. do yourself a favor, keep waiting, I hope your not a parts distributor or dealer, if you are, you better get moving, these guys are coming to a town near you. Sell your business to them, join them, be friendly competitors, whatever, just stomp waiving your stick. They will break it and poke you in the eye with it.
April 21st, 2007 at 11:26 am
The roads to Wall Street are littered with IPO’s that funded roll-ups in many different industries, including ours. AGI is not the first to attempt this challenge, and the people funding and organizing this second attempt are the same ones that funded and managed Rec (Wreck) USA.
The roll-ups that seem to be successful are those that can afford to lose the original owners and trim excess fat from the organization through a consolidation of shared services and benefits. This approach was very successful for Waste Management and Coach USA. In both of these situations they were dealing with a commodity that could be standardized and stripped down under one corporate entity because every unit, location and employee worked from the same playbook.
It is my belief that in most roll-ups (and I have lived through one just like this one) that involve entrepreurial businesses that are built on people and not product, on superior service and not cookie-cutter management decisions, and on the ability to develop in-depth relationships with both suppliers and customers … it just doesn’t work. The real good employees that appreciate working for a small company and feeling important will soon leave. You are then left with the ones that don’t know, and don’t care, about the business.
The former owners, and entreprenurial trailblazers, soon become frustrated when they are no longer able to make the decisions that they know must be made and eventually lose interest, fall out of favor with the new management team (that often doesn’t have a clue about the real business but are wiz-kids with a financial spreadsheet), and eventually submit their resignation.
They will then sit out the contracted non-compete period while strategizing on how to compete against the new roll-up when they are free of any personal liability for once again being able to think and do what they know is right.
Once the last day of the non-compete expires, they will usually be found across the street or on the other side of town opening up a new business that will soon attract most of their former employees, customers, and suppliers; and they will once again be on the road to building a new entrepreneurial venture and live happily ever after.
This is not a fairy tale … it’s well documented from the WSJ to the local newspaper that comes out in your home town every Thursday afternoon.
One just has to look at some of the new dealerships that are being opened by former Freedom Roads employees who once sold their company and became part of this roll-up to see that dreams can come true more than once in a lifetime!
April 21st, 2007 at 10:28 am
If you will allow me one more comment. It’s about people SELLING to take out money for their retirement years and family. I think it’s about the tax laws and not much more. A sale of long term stock at a 15% tax rate now is a better bet than waiting for the Democrats to take over the White House and raise the tax rate to something like %40 in the near future. If it were your money, would you wait?
April 21st, 2007 at 10:21 am
Somewhere in the early 1980’s I wrote and article called “The Depo Concept” which was published in one of the trade magazines. I was a dealer operating a pretty big store just south of Chicago. Over a hundred units in rental alone. While I dreaded the “company store” notion, I did recognize that eventually “someone” would devise a way to package product, standardize pricing and share inventory amongst several locations to name a few advantages of a consortium. No computer sales then and no manufacturer willing to try the idea. But today, some twenty years later, AGI may just be onto something IF they proceed with a forward thinking business plan and model that fits the times. You can get anybody to mesh numbers with an mba right out of college…what is often lacking is creative ability! If it were my operation I would change a few things…immediately. Don’t sell them short yet. This is a wait and see and it could be something really good. Without certain changes however…I too see problems ahead. The result could be a mediocere operation instead of an outstanding one.
April 20th, 2007 at 4:10 pm
Parts 101,
There is a new invention called “Spell Check” that you may consider using in the future when typing while drunk.
It will make for much easier reading!
Thanks.
April 19th, 2007 at 6:40 pm
And there lies one of the major problems in the RV industry today. I hope the rest of the industry isn’t drinking the same Kool-Aid that “parts101″ has been consuming lately! His last line is indicative of the way many people in the RV industry reacted when the handwriting was on the wall, when the acquisitions started to close, when key dealer owner/executives started to see things that didn’t match the methods they used to build their successful businesses, and when both companies (Camping World and Freedom Roads) were combined under the responsibility (I have a problem using the word “leadership” in this sentence) of the same person that drove Wreck USA into the ground. They just didn’t care. And they didn’t do anything about it.
Mr. Adams has continued to reward Mr. Lemonis for his first disaster with RV dealerships and apparently felt that throwing more money on the problem, and more people under the bus, would somehow result in some on-the-job-training that would yield different results this time around.
Was there really doubt in anybody’s mind that the brilliant Mr. Adams would not find a financial vehicle that would help him cash out these investements at some point in time. When various options that would have allowed some type of IPO for one or all of his RV related companies, he began to put the pieces in place that resulted in the sale of Camping World to Freedom Roads this week.
I’m not sure where “parts101″ is located, or who he is talking to when he says “when we talk to local parts and service managers they seem to love freedom and campers world.” Really? Can we have their names and telephone numbers please, I want to hear that one from their lips to my ears. If you talk to any regional distributor they will tell you that they continually get calls and must ship product to a Freedom Roads dealer because they system that has been established does not always work the way it was intended. Their are regional distributors that lost many major dealer accounts once the dealership was sold to Freedom Roads and the parts and accessories store was told that they could not do business with their favorite regional distributor that they respected and enjoyed good service from … every day! The dealers were mad. The regional distributors were mad. And guess what, the customers were also mad because they were the ones most impacted by those decisions. Today, many of these same regional distributors will tell you that they are doing just as much, and in some cases more, business than when the dealership was first acquired.
Freedom Roads and Camping World will find that bigger is not always better. I’m not so sure that the road map used to destroy Wreck USA was actually destroyed. I think it was just put away for awhile and recently pulled out so that they can stage the sequel. Should we call it Wreck USA Part Two, Roads to Ruin, or Two Companies, Twice the Fun, Double the Damage?
The RV industry is facing some significant challenges in the next few years and the potential destruction of a company this size, would be a disaster that would impact many innocent manufacturers and dealers that failed to observe the road signs when the idea wrecked the first time around! I don’t think anybody wants to see the sequel to Wreck USA. However,cashing out and leaving the company with a potential finaicial risk should adverse conditions impact their business strategy, could produce the same results once again.
When “parts101″ puts the Kool Aid down, perhaps he can enlighten the rest of us on which facts Greg got wrong and where he got his information. We know where Greg got his, and if it’s wrong somebody will go to jail. It’s not nice to play games with the SEC and Mr. Adams is far too brilliant to ever let that happen. So I’m guessing the majority of us will believe everything in the SEC filing and reported in this blog.
April 19th, 2007 at 3:08 pm
guys get your facts right. we may not like cammping world or the kid runnin it but darn, this guy has put together one heck of a deal. when we talk to local parts and service managers they seem to love both freedom and campers world. I hate when they open new stores but this is and will continue to be the biggest most largest success this industry has. I am sure they know more than we think. maybee we should just learn somethin and get more competeteve. as we spend time on this they keep buildong and buying. the store managers tell me, “don’t worry our stores make a lot more than most folks think.” they should be over one and a half billion this year. gotta make plenty of money on that. I don’t care what people think.