Make us your home page

Lazy Days RV Center misses $8.1-million payment on debt

The downturn crippling the auto industry has come home to the sprawling Lazydays RV SuperCenter in Seffner, the world's largest single-site RV dealer.

Lazy Days RV Center Inc., the company's parent, missed a long-term debt payment of $8.1-million due Monday and is trying to renegotiate terms with holders. Missing the interest payment triggered a 30-day grace period before the company is considered in default.

Lazydays said modifying debt terms is the best way to ensure the company's viability "through what is anticipated to be a protracted downturn in the market for recreation vehicles.''

Between July and September, Lazydays laid off 200 people, about 30 percent of its workforce. It currently employs about 500 in Seffner.

Will the company avoid additional layoffs? "We sure hope so,'' chief financial officer Randy Lay said Monday. "It depends on the market.''

"The RV industry really peaked in 2004,'' Lay said. "It typically leads the economy into a recession and then it's an early indicator of recovery. This downturn is going on four years and I would say it is probably due to recover.''

Amid the economic slump, Lazydays picked up market share from other ailing or failed dealerships across the country. It now sells one out of every nine high-end recreational vehicles, or about 12 percent of the market, up from about 8 percent a year ago.

But the pace of both visitors and, more importantly, sales has fallen dramatically. In the first nine months of 2008, sales totaled $450.9-million, down from $594.6-million in the first nine months of 2007, Lay said.

Cost-cutting has improved cash flow, but fixed interest costs are troubling. The biggest burden for the majority owner, the private equity firm of Bruckmann, Rosser, Sherrill & Co., is paying off debt related to its $206-million acquisition of Lazydays in 2004 from company founder Don Wallace.

To help finance that acquisition, Lazydays sold $152-million in eight-year senior notes in a private placement. At the time, Moody's Investors Service and Standard & Poor's Rating Services assigned subinvestment-grade ratings to the notes, citing the company's high debt levels relative to earnings.

Jeff Harrington can be reached at (727) 893-8242 or

Lazy Days RV Center misses $8.1-million payment on debt 11/17/08 [Last modified: Monday, November 24, 2008 8:44pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Airbag maker Takata bankruptcy filing expected in Japan, U.S.


    DETROIT — Japanese airbag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators.

  2. Federal agencies demand records from SeaWorld theme park


    ORLANDO — Two federal agencies are reportedly demanding financial records from SeaWorld.

    Killer whales Ikaika and Corky participate in behaviors commonly done in the wild during SeaWorld's Killer Whale educational presentation in this photo from Jan. 9. SeaWorld has been subpoenaed by two federal agencies for comments that executives and the company made in August 2014 about the impact from the "Blackfish" documentary. 
[Nelvin C. Cepeda/San Diego Union-Tribune/TNS]
  3. Legalized medical marijuana signed into law by Rick Scott

    State Roundup

    TALLAHASSEE — Gov. Rick Scott on Friday signed into law a broader medical marijuana system for the state, following through on a promise he made earlier this month.

    Gov. Rick Scott signed legislation on Friday that legalizes medical marijuana in Florida.
  4. Line of moms welcome Once Upon A Child to Carrollwood


    CARROLLWOOD — Strollers of all shapes and sizes are lined up in front of the store, and inside, there are racks of children's clothing in every color of the rainbow.

    At Once Upon A Child, you often as many baby strollers outside as you find baby furniture and accessories. It recently opened this location in Carrollwood. Photo by Danielle Hauser
  5. Pastries N Chaat brings North India cuisine to North Tampa


    TAMPA — Pastries N Chaat, a new restaurant offering Indian street food, opened this week near the University of South Florida.

    The menu at Pastries N Chaat includes a large variety of Biriyani, an entree owners say is beloved by millions. Photo courtesy of Pastries N Chaat.