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AUBURN HILLS, MI-Manufactured housing builder Champion Enterprises, Inc. has sold 22 of its sales centers in five states in six separate transactions. The total value of the sales is approximately $20million.
Champion sold centers in North and South Carolina, Virginia, Texas and Louisiana. All the sales were for cash. In all but six locations, which were home centers located in communities, long-term distribution agreements were entered into with the buyers to continue to represent Champion. Additional details were not disclosed.
"These sales are another milestone in our previously announced plan to completely exit our traditional retail operations, now consisting of 20 sales centers in ten states," says Champion president and chief executive officer William C. Griffiths. "Within the next six months we expect to divest these remaining locations with no material impact on results and while generating an estimated $17 million in cash."
An estimated $10 million of the sale price will be used to pay down related floor plan obligations. Remaining floor plan debt now totals less than $2 million. The company says it will record no significant gain or loss from these transactions.
Champion operates 29 homebuilding facilities in 14 states and two Canadian provinces as well as 18 non-traditional retail locations in California.
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