Cikira RV Ceases Production; May Have to Close Permanently
Wednesday, January 12, 2011
Cikira RV has ceased production and may have to close its doors permanently unless it can obtain additional financing to continue operations, company President Alan Carter told RV PRO recently.
Cikira RV was conspicuously absent at last month’s 48th Annual National RV Trade Show in Louisville, Ky. The company had reserved space at the show for its units – but didn’t occupy the space, fueling speculation that the Sturgis, Mich.-based RV manufacturer had ceased operations.
“Basically we just outgrew our capital,” Carter explained of the company’s decision to suspend operations. “The product was selling better than expected, and we really were on the cusp of some innovative things. Unfortunately, there’s just not a lot of private equity money out there right now. And finding the necessary investors and the things we needed just didn’t come together. It was just bad timing.”
“We’re still hopeful,” he added, “but right now it’s going to be hard to bring things back.”
Carter said he doesn’t want to exit the industry and is continuing to investigate all possible options, which could involve starting up another RV operation. He said he is in the process of contacting his dealers to notify them regarding developments pertaining to his company.
If Cikira RV does shutter its doors, it would be the third company to do so in the past 12 months. Canadian RV maker Glendale International declared bankruptcy in January 2010; travel trailer maker Hi-Lo ceased operations in July 2010.