Tampa RV Retailer Closes Dealership, Slashes Costs Amid Financial Struggles

Facing yet another quarter of grim financial results, Tampa RV retailer Lazydays has made the tough decision to close one of its dealerships and consolidate two other locations, marking a significant shift after its aggressive national expansion in 2023.

Lazydays (Nasdaq: GORV) reported a sharp revenue decline of 22.6%, falling from $308.4 million to $238.7 million, while losses ballooned to $44.2 million, compared to just $3.6 million during the same period last year. The company’s financial statements show that net losses for the first six months of the year have totaled $66.2 million.

In response to these financial challenges, Lazydays shuttered its Waller, Texas dealership and merged operations at two locations in Surprise, Arizona, according to CEO John North. Last year, the company was in expansion mode, opening three greenfield locations and either opening or acquiring eight new dealerships, including the Surprise-based Orangewood RV Center. North acknowledged that these difficult decisions were necessary, but emphasized that Lazydays is not currently considering significant store divestitures or mergers.

The financial difficulties for Lazydays began to surface last year when the company slashed prices and discounted inventory to accelerate turnover and boost sales volume. Despite these efforts, the company still ended the year with $110 million in losses. To mitigate further financial strain, Lazydays’ lenders agreed to waive financial covenants for the last quarter of 2023 through the first half of this year, but the temporary waiver has since expired. Fortunately, lenders have not yet demanded accelerated payments or repayments.

CEO John North noted that the anticipated seasonal sales volume increase in the second quarter failed to materialize. As a result, Lazydays has taken additional cost-reduction measures in August, expected to be largely completed by the end of September. These actions are projected to save the company approximately $25 million annually.

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