So...why were they forced to relocate? If you look on their website, it says one of the main problems was that

1). inventory not properly disclosed as obsolete when ALF acquired its business in December 2005.

What does this mean?

2). A second material factor requiring ALF’s Chapter 11 filing relates to operational disruptions caused by the installation of a new ERP system as ALF transitioned away from the computer system of ALF’s previous owner.

Again - what the heck does this mean...It makes it sound like ALF was bought in 12/2005 and the new owner got screwed. So what really happened? Who in their right mind invests $62 million dollars in new technology and plant, and the next minute declares bankruptcy. Sounds very much like an Enron deal. The ones really screwed, as usual, are the faithful employees.

Maybe some of you guys who don't understand business shouldn't speculate. I understand this may not be a popular statement but nice goings comments just reek of lack of knowledge but yet has a statement that they screwed the employees.

The first statement is that the inventory received was not all current. This commonly happens in mergers and takeovers. The second is that the system in place under the Mercedes ownership was not able to be used by the new ownership. Again this is common. Combine the 2 and you can have an inventory and cash flow nightmare. Been through it twice in the past 3 years and probably 2 more times in the next 12 months.

By filing bankruptcy they are basically publicly putting off their creditors until they can pay them. Bankruptcy in business doesn't always mean the same thing as personal bankruptcy. If you remember several years ago K-Mart declared the same bankruptcy and they are still around.

I hope they make it just because the more the merrier. Plus I would hate to see all that investment go to waste in both personnel and property.

Jeff

Location: Pennsylvania

ALF's new owners had to relocate because the factory they were using in NC was not part of the deal with Freightliner. Freightliner is using that facility to produce FL class 8 chassis. In talking with someone knowledgeable about the new facility in SC, they said the layout was not done well, i.e. 220v power was not sufficient to support the assembly line and there were no conduits in place to support the computer PC's that were needed on the line. The new owners had to string computer cables overhead to connect the PC's. Another big problem was that they were not paying their suppliers. I talked with a fire truck repair shop owner at Fire East last weekend who had not been paid by ALF for warranty work since last June. Needless to say the departments who contacted him for warranty work were not happy customers when he advised them they wud have to pay him and then try and get reimbursed by ALF!

Location: GA

The big difference wit the K-Mart bankruptcy is that Sears came in and helped bail them out. I think ALF will emerge from chapter 11, but as a smaller company, at least to start fresh.

Location: Baltimore

Daimler Chrysler, at the time, was trying to shed units that they felt 'didn't meet their core business values' hence the shedding of Chrysler, and ALF among the chief products.. In a sense of the word, they were money-losing propositions, not investing any capital to 'update' products. The lack of investment, coupled with the expedited sale and transition has led to the difficulties LaFrance is experiencing at this moment.