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National R.V.'s Founder Resigns, Citing `Crisis'

August 26, 2006|From Reuters

National R.V. Holdings Inc. said in a regulatory filing Friday that founder Robert B. Lee had resigned from the board and that it disagreed with the contents of his resignation letter, in which he cites an "ongoing crisis" that he believes threatens the Perris, Calif., company's future.

In a letter dated Monday, Lee wrote: "I have been largely unsuccessful in persuading the board to take any action to deal with the ongoing crisis of this company."

He also said it was irresponsible to retain a chief executive, Bradley Albrechtsen, "who has lost some $80 million in a short period of time with additional losses a virtual certainty in the near future."

Lee added that the board's "lack of action could create personal liability of directors to shareholders for the loss of this company."

In November the company rejected a takeover proposal worth about $92 million from CC Acquisition Group, led by Lee, calling it inadequate.

National R.V., which makes motor homes and travel trailers under such brand names as Tradewinds and Dolphin, reported a second-quarter loss of $7.1 million this month. It said more than $5 million of that loss was attributable to defective fiberglass sidewall material used on about 70 motor homes, and that $1.1 million was attributable to a reserve for a recall of tires. Shares of the National R.V. closed unchanged at $3.93 on Friday. They have plunged 41% this year.

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