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Old 07-25-2017, 10:32 PM   #1
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Default Camping World acquires one of the top Roadtreking dealers...

American RV in Grand Rapids MI has been acquired by Camping World. American RV has been one of the best Roadtrek dealers.

Camping World acquires American RV in Michigan | RV Daily Report
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Old 07-25-2017, 10:44 PM   #2
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And on it goes!

Will all the excursion into dealerships be a good move, or over extend them and make it all crash and burn? I hope they have sense enough not to finance everything without enough income to service the debt in slower times.
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Old 07-25-2017, 11:47 PM   #3
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American RV in Grand Rapids MI has been acquired by Camping World. American RV has been one of the best Roadtrek dealers.

Camping World acquires American RV in Michigan | RV Daily Report
There's nothing to stop Camping World from acquiring American RV but doesn't Roadtrek have the final say regarding whether and/or where CW becomes a full fledged RT dealer? I would think that established Roadtrek dealers might not be too happy about an invasion into their market territory.
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Old 07-26-2017, 03:39 AM   #4
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Note to self: Never shop at American RV.
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Old 07-26-2017, 05:03 AM   #5
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.

Not all the Camping World are bad.

I know most of them have bad reputations,
but there are good ones too. Probably they are bought-outs just like this American RV.
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Old 07-26-2017, 08:35 AM   #6
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...................or over extend them and make it all crash and burn? .......................
Yes, just a hiccup in NA economy and fall could be dramatic.
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Old 07-27-2017, 03:41 AM   #7
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CW is really on the move, be it good or bad, for them or customers! I read where they have taken over Overton's Marine Supply, McGeorge RV in Richmond, and a few others I can't remember. With the gobbling up, I wonder how much cash is really going to the seller. I have never been a fan of CW, but wonder what their business plan has for sustainability if tight times come? Ron
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Old 07-27-2017, 03:58 AM   #8
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There's nothing to stop Camping World from acquiring American RV but doesn't Roadtrek have the final say regarding whether and/or where CW becomes a full fledged RT dealer? I would think that established Roadtrek dealers might not be too happy about an invasion into their market territory.
Hmm, it would only be fitting that you brought this question up, cruising7388. I was wondering about the same thing.
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Old 07-27-2017, 06:12 AM   #9
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There's nothing to stop Camping World from acquiring American RV but doesn't Roadtrek have the final say regarding whether and/or where CW becomes a full fledged RT dealer? I would think that established Roadtrek dealers might not be too happy about an invasion into their market territory.
Just because Camping World bought a Roadtrek dealership in Grand Rapids wouldn't necessarily give them the right to sell Roadtrek RVs anywhere else. I imagine Roadtrek's contract with American RV spelled out where they were allowed to sell Roadtreks (and for how long), and Camping World would still be bound by that.
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Old 07-27-2017, 02:41 PM   #10
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If a crash comes, they have effectively already put their competition out of business and they can then close some of the dealerships and direct traffic to the remaining ones. Seems pretty smart.
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Old 07-27-2017, 03:32 PM   #11
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If a crash comes, they have effectively already put their competition out of business and they can then close some of the dealerships and direct traffic to the remaining ones. Seems pretty smart.
Except that only works if you haven't built up too much debt by financing all the acquisitions, as you still need to have enough income to service all the debt. The only way would be to do a bankruptcy to reduce the debt, along with closings, to make it viable going forward.

The debt load is always the big risk in this kind of expansion program.
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Old 07-27-2017, 03:48 PM   #12
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They also acquired Gander Mountain out of bankruptcy but plan to close most of the stores...

Camping World Buys Out Gander Mountain | Outdoor Life
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Old 07-27-2017, 03:57 PM   #13
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You always set up your corporate structure to firewall the holding company from subsidiary debt. I would be almost certain that American RV will have their own debt and operating expenses. They will pay corporate G&A each month as support to the organization. If bad things happen, they collapse American on it's own and it doesn't drag down the rest of the corp. Same is probably true of Gander Mountain and the Camping World stores. The cash cow is most likely the Good Sam club and all those sweet dues payments that roll in each year.
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Old 07-27-2017, 06:13 PM   #14
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The cash cow is most likely the Good Sam club and all those sweet dues payments that roll in each year.
I agree. Lemonis has said in the past that the real value of Camping World is "selling warranties, insurance, roadside assistance, service, parts". And he's also said to Good Sam members, "it is my intention to provide you special offers and exclusive savings through Overtonís boating and Gander Mountain outdoor specialty stores and online sites. This new benefit will be rolled into your Good Sam Club membership".

So I think these acquisitions are about making the Good Sam membership more attractive and getting access to potential new members at the same time.
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Old 07-27-2017, 06:32 PM   #15
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So I think these acquisitions are about making the Good Sam membership more attractive and getting access to potential new members at the same time.
I think this is a correct analysis, but I wish them luck. The Good Sam brand is (or was) in shambles due to their history of unbelievably obnoxious marketing practices--notably their habit of sending enough junk mail to heat your house with. It was so bad that their main competitor (CoachNet) has ads bragging about their lack of junk mail. I'm told that they have gotten better in recent years. I wouldn't know. I had to write a letter to their president's office to get them to stop sending me trash, years after I quit them.

BTW: Does anybody know whether Hymer owns or affiliates with a Camping World-equivalent in Europe?
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Old 07-27-2017, 06:40 PM   #16
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The Good Sam brand is (or was) in shambles due to their history of unbelievably obnoxious marketing practices--notably their habit of sending enough junk mail to heat your house with. It was so bad that their main competitor (CoachNet) has ads bragging about their lack of junk mail. I'm told that they have gotten better in recent years.
They're not that bad now. I get the occasional bit of junk mail, but it's very occasional, less than one per month I'd say. It's not enough for me to notice anyway, unlike, say, AARP, where it's rare for me to go even one week without getting one or more pieces of junk mail.
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Old 07-27-2017, 06:41 PM   #17
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I think this is a correct analysis, but I wish them luck. The Good Sam brand is (or was) in shambles due to their history of unbelievably obnoxious marketing practices--notably their habit of sending enough junk mail to heat your house with. It was so bad that their main competitor (CoachNet) has ads bragging about their lack of junk mail. I'm told that they have gotten better in recent years. I wouldn't know. I had to write a letter to their president's office to get them to stop sending me trash, years after I quit them.

BTW: Does anybody know whether Hymer owns or affiliates with a Camping World-equivalent in Europe?
Camping World from UK doesnít sell caravans or campers.Camping Store | Camping Equipment | Caravan Awnings
Hymer and all othr tend to use dealers ERWIN HYMER GROUP
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Old 07-27-2017, 06:59 PM   #18
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Camping World from UK doesnít sell caravans or campers.Camping Store | Camping Equipment | Caravan Awnings
Hymer and all othr tend to use dealers ERWIN HYMER GROUP
I ask because I have a sneaking suspicion that CW is fattening themselves up for an eventual acquisition by Hymer. All the OEMs are desperate for a solution to the lack of national repair networks for their owners. A well-managed Hymer/CW/RT empire could be formidable.
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Old 07-27-2017, 07:06 PM   #19
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CW is really on the move, be it good or bad, for them or customers! I read where they have taken over Overton's Marine Supply, McGeorge RV in Richmond, and a few others I can't remember. With the gobbling up, I wonder how much cash is really going to the seller. I have never been a fan of CW, but wonder what their business plan has for sustainability if tight times come? Ron
They recently took over Reine's RV in northern VA
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Old 07-27-2017, 07:15 PM   #20
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I ask because I have a sneaking suspicion that CW is fattening themselves up for an eventual acquisition by Hymer. All the OEMs are desperate for a solution to the lack of national repair networks for their owners. A well-managed Hymer/CW/RT empire could be formidable.
It could be formidable or The disaster ŗ la Sears. It took Hymer long time to get into NA, it could be doubtful that a blitzkrieg style market penetration would be their strategy. It is taking them long time to take care of RT CEO, what if they have to deal with Lemonis.
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