The last vestiges of MVP RV were sold Thursday (April 19) to a Los Angeles-based real estate investment firm for an undisclosed amount.
Hackman Capital—which buys land and buildings and then sells or leases them—was among a handful of bidders, none with RV manufacturing intentions, to attend the private auction organized by Credit Management Association (CMA) at the recreational vehicle maker’s former headquarters near Riverside at 5300 Via Ricardo, reports Press Enterprise.
Hackman bought everything including two buildings with 460,570 square feet of space combined on 37 acres, property that had been owned by Fleetwood Enterprises before MVP RV bought it.
The rest of what Hackman bought—the equipment, vehicles, fixtures, and furniture inside—will be auctioned again on April 26 by the same auctioneer, said Michael Joncich, manager of the CMA’s adjustment bureau.
MVP RV shut down in mid-December amid a legal dispute that pit one foreign investor—Chinese businessman Winston Chung—against a group of others dubbed Fadar International which owns a majority of the private company’s shares.
Fadar International’s investors were owed about $22 million when they shut the company down and transferred its assets to CMA to liquidate in the auction.
Joncich said the winning bid was “substantially less,” than $22 million. Overall, the company owed creditors some $37 million.
Fadar accepted Hackman’s bid and the deal is expected to close escrow in 45 days, Press Enterprise reports.
Chung, who at one time had been the company’s chairman and gained stature in the Inland region after donating millions of dollars to UC Riverside, made a failed attempt to bid at the last minute.
Shortly before the 11:30 a.m. auction start, a lawyer representing Chung reached out to CMA, Joncich said. Chung, along with other investors, would have had to make a sizeable deposit and sign documents in order to qualify as a bidder and they didn’t.
Chung’s attempt surprised Brad Williams, MVP RV’s former CEO.
“I was not aware of any attempt on his part, as of late, to do anything,” Williams said, adding that Chung had made a serious attempt last year to purchase the entire company from Fadar, but failed.
Williams said he hasn’t spoken with Chung in about two months.
“There are no hard feelings with anyone except we feel badly for the people who worked for MVP,” he said, adding that he believes Chung had the best of intentions when he invested in MVP RV and pledged $310 million more so the company could build RVs to export to China. That never occurred.
“Winston’s a very optimistic individual,” Williams said. “And I don’t think he sold us a bill of goods.”
Williams has no immediate plans to revive the RV company or work for anyone else and said he would feel guilty to find work if the MVP RV’s former employees were still looking.
“I almost feel like the captain of the ship making sure everyone’s off before I get off,” he said.
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