Getting closer

[mark]

We are getting closer to a final decision. Between a Fairmont Friendship and a Scgult Legacy. All with the "checklist" items from Randy's book. The Schult dealer is local (and the only mfd home dealer within 250 miles), but i am concerned with what i have been reading about Schult/Oakwood being in bankruptcy. Should this be a concern? Will the compay go belly up leaving me stuck with no support? Will they be bought out? What's the word on all of this?
Liked the Patriots, but the dealer is a long way from here.
Thanks
Mark

[rmurray]

You are right to be concerned about the financial condition of Oakwood...The old plants of the Schult organization will survive even if they are sold off in the bankruptcy....but..will the new owner be responsible for your warranty...Legally NOT...So if you buy a Schult now..you must hope and pray that they make it out of bankruptcy..or hope the new owners have a heart.....OH says they will survive....but there have been things going on that might make one wonder..

The company that has so far bailed out Oakwood just bought the whole company of Clayton Homes (for cash)..Many think this might mean the end of OH...He can let them slip away...buy the assets for pennies on the dollar with Clayton..and end up a huge winner...If that happens...your warranty claims go the way of all creditors...You would have to get in line and wait...may collect a few pennies...maybe none..

If you buy...waste no time finding problems and getting them cared for...Also you could buy a 2/10 warranty with the home..It kicks in if the company files bankruptcy...It does not cover small stuff...but at least the big stuff would be covered...Maybe you could discuss this with the dealer..He might even give it to you to help your thinking..

[Terry]

Who bought Clayton Homes and how much did they buy it for? Just curious.

[rmurray]

Bershire Hatthaway Company (NYSE listed..shares sell for about $ 65,000 each)....Majority interest of Bershire Hatthaway is owned by Warren Buffet...Second richest man in the world.....
They have made a cash offer to Clayton (which management..Clayton family..has accepted) for $12.50 per share...That tranlates to $1,700,000,000...1.7 BILLION...The day they made the offer they had 13 Billion cash in the bank..

The 1.7 billion would pay for ALL the outstanding stock of Champion, Fleetwood, Liberty, Skyline, Southern Energy, Cavalier and Oakwood ...COMBINED...

Stock holders will be voting on the sale next month..with the Claytons owning 28% of all Clayton stock..It is likely to pass...

This is the same company that would end up owning all stock in Oakwood at the end of the bankruptcy...but some think it would be cheaper for BH to let OH fall into liquidation and then buy the best parts at fire sale prices...

One thing is for sure...Clayton will not be going out of business anytime soon..

[mark]

OK...that looks good, but does that mean that Schult will still be in business? I talked to the dealer, and they were up front and told me the same info about BH. They are concerned as well, as they have sold Schult for 34 years and it is a small family owned business with a very good reputation. They are sure that Schult will be around for a very long time. They even shopped for other dealerships in case Schult went under, but when the news came that BH bought out OH, they decided to sitck with them. Again, they are a very reputable dealer, so we may go ahead with the Schult purchase.

If anyone has any other info, please let me know. In our area (with lower wages due to its rural location) a $60,000 purchase is a VERY MAJOR purchase.

Thanks for all of the responses.

Mark

[rmurray]

You have said the magic words...1)..the dealer was honest...

2).."sold Schult for 34 years and it is a small family owned business with a very good reputation"....These dealers will care for you even if the factory does not...

Schult will be around...the only question is if they will be responsible for your home because of the bankruptcy...But sounds like you have a dealer that will take care of you if needed...

Smile big...feel good...GO BUY THE HOME

[Richard]

Murray: What is the conotaion for using the Skyline name in th OH situation? Is this just a comparison of value?

[rmurray]

I was just pointing out that Warren Buffet paid more for Clayton..than he could have bought all of the rest of the industry for....Actually the total market value of all of the above companies is less then 1 Billion...

Why does a 70+ year old guy with this much money want to buy more companies??????

[sabrina]

it's called obsessive compulsive disorder. no kidding. solely based upon his financial position, it's probably reached a pathological level.

[jeff]

i would not buy the schult because of the simple fact of warranty. warranty is a major thing to be concerned of. i know this because i bought an oakwood home a few years ago when they were doing fine but it would take 2-3 months at a time to get anything done and trust me there was alot to be done. i recently purchased a palm harbor and had a couple issues and someone came right from the factory even though it was more than 200 miles away within 48 hours. now that is service, so who cares about if they will be around later look a little longer it is your investment