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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 1999
Champion Enterprises, Inc.
(Exact name of registrant as specified in its charter)
Michigan
State or other jurisdiction of incorporation
1-9751 38-2743168
Commission File Number IRS Employer Identification No.
2701 University Dr., Suite 300, Auburn Hills, Michigan 48326
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 340-9090
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Item 5. Other Events.
On July 30, 1999 the Registrant issued a press release, which is attached
as Exhibit 99.
Item 7. Exhibits.
Exhibit
Number.
99 Press release dated July 30, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHAMPION ENTERPRISES, INC.
/S/ JOSEPH H. STEGMAYER
Joseph H. Stegmayer
Executive Vice President, Chief
Strategic and Financial Officer
July 30, 1999
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INDEX TO EXHIBITS
Exhibit No. Description
- ----------- -----------
99 Press release dated July 30, 1999
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EXHIBIT 99
FOR IMMEDIATE RELEASE
Investor and Media Contacts:
Joseph H. Stegmayer Elizabeth M. Higashi, CFA
Chief Financial Officer Investor Relations
(248) 340-9090 (847) 304-1655
CHAMPION ENTERPRISES, INC. ANNOUNCES
ONE-TIME CHARGE RELATED TO
CUSTOMER CHAPTER 11 FILING
Conference Call scheduled today for 11:00 a.m. EDT
Call-in Number (212) 896-6147
Auburn Hills, Mich., July 30, 1999 --- Champion Enterprises, Inc.
(NYSE: CHB) said today that the recently announced Chapter 11 filing by its
independent retailer Ted Parker Home Sales, Inc. would result in a one-time
after tax charge of $20.5 million or $0.41 per diluted share in the third
quarter of 1999. Ted Parker Homes has 42 retail locations primarily in North and
South Carolina and is one of the nation's largest independent retail chains.
General Electric Investment Corporation and Ardshiel, Inc., a venture capital
firm, acquired a majority interest in the retail chain late last year.
Walter R. Young, Champion Chairman, President and Chief Executive
Officer, said, "Coming right on the heels of a good second quarter earnings
report and conference call with our shareholders, this bankruptcy action was not
anticipated. As soon as we became aware of the filing, we addressed its impact
and our course of action. With our own retail organization's expertise, we now
plan to open approximately 20 new locations in the region to sell the inventory
of Parker homes, which is subject to repurchase by Champion. These new locations
will give us greater marketing and distribution control and expand our
profitable, growing retail organization."
Philip C. Surles, Champion Chief Operating Officer, said, "In addition
to expanding our own retail organization in the area, we are also considering a
number of other options for the marketing and distribution of the inventory.
Most of the homes are multi-section and are sited in environmental displays,
which will add to our relocation costs. We also anticipate that the homes will
be sold at discount. The combination of declining regional wholesale demand and
the effect of the Parker situation will also result in the temporary
consolidation of our North Carolina operations. We announced today the idling of
our Maxton, North Carolina facility."
Joseph H. Stegmayer, Executive Vice President and Chief Strategic and
Financial Officer, commented, "The nature of the Parker bankruptcy
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is unique in its size and effect. Over the last five years, the impact of
defaults by independent retailers has not been material. While this is a painful
setback, we believe it is a temporary one. We are facing the issue directly by
creating a stronger retail network for the distribution of our homes. In the
long-run, the organization will continue to take steps to strengthen and improve
Champion's earnings growth."
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan,
has produced more than 1.4 million homes in its 46-year history, including more
than 70,000 homes in 1998. Champion has 65 home building facilities in 18 states
and western Canada. For the year ended January 2, 1999, revenues were $2.3
billion and income from continuing operations rose 32 percent to $1.91 per
diluted share. In addition to 282 company-operated sales centers, Champion homes
are sold by 3,500 independent retail locations, which include approximately 700
locations that have joined the "Alliance of Champions" marketing program.
Further information on Champion can be found using the company's web site at
www.champent.com and www.thehousingplace.com.
This news release contains certain statements, including discussions of
the company's retail and distribution plans, product pricing, and earnings
growth, that could be construed to be forward looking statements within the
meaning of the Securities and Exchange Act of 1934. These statements reflect the
company's views with respect to future plans, events and financial performance.
The company has identified certain risk factors which could cause actual results
and plans to differ substantially from those included in the forward looking
statements. These factors are discussed in Item 1 Business of the company's 1998
Form 10-K, and this discussion regarding risk factors is incorporated herein by
reference.
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