Trailmobile files for bankruptcy protection; Canadian division not included

TORONTO (Dec. 13, 2001) — Executives at Trailmobile Canada Ltd. pledged to continue production after the company’s U.S. affiliate, Trailmobile Trailer LLC, filed for protection from creditors under Chapter 11 under the U.S. Bankruptcy Code.

Trailmobile Canada, its majority owner, Trailmobile Corp., affiliated branch operations, and parts and service operations in the United States in Canada are not included in the filing, said Bert Clay, vice-president of sales and marketing at Trailmobile Canada.

Trailmobile Corp. acquired a 54% interest in Mond Industries on Dec. 16, 1999, and renamed the company Trailmobile Canada Ltd. It produces trailers at a plant in Mississauga, Ont.

Based in Northbrook, Ill., Trailmobile Trailer LLC ceased production at its plant in Charleston, Ill., last week, and closed its factory in Jonesboro, Ark., on Dec. 3. Last month, it surrendered possession of its refrigerated trailer manufacturing plant in Liberal Kan., to the city after the company defaulted on the building lease.

Combined, Trailmobile Trailer and Trailmobile Canada produced 28,089 trailers in 2000, the fourth largest total in North America behind Wabash National, Great Dane Ltd. Partnership, and Utility Trailer Mfg. Industry-wide, trailer shipments have fallen roughly 50% in 2001.