Failed Company Paper: Champion Enterprise

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Company Description

Champion Enterprises Inc. is one of the leaders in the manufactured home building industry. The company specializes in factory manufactured housing and building materials, specializing in two-story homes, multi-section homes, ranch-style homes, single-style homes, Cape Cod style homes, townhouses, duplexes, and triplexes. Modular homes maintenance cost is lower than traditional homes making them a better option.

Champion Enterprises traded on the New York Stock Exchange under the ticker symbol CHB. The company which was founded 56 years ago declared Chapter 11 bankruptcy in 2010. Before filing Chapter 11 the company was the highest producer of homes in the industry while doing operations out of various plants in North America and Europe. Champion Enterprise is a parent company of numerous subsidies in the manufactured home industry.

I decided to take on investment in the company, which at the time was stalling, in hopes of getting a return on investment. I sold my shares 02/07/2011 at a loss because the company did not seem to have things in order. I originally acquired 9 shares on 08/14/09 and 91 shares on 10/07/09. The average price per share (total cost divided by total shares) when I purchased the stocks was $0.45 and on the date of sell my shares they were worth $0.02 per share. The company was excellent at providing information to its investors as decisions were made during the years of operations; however there is limited information on the company since the bankruptcy .

Future Outlook

The future for Champion Enterprise is extremely optimisticoptimistic; with some major changes the company can once again be successful.. The reason the company filed for bankruptcy was to take care of its deb...

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...ck trends past performance is an indicator of future performance. Therefore, investors should proceed with caution when investing in Champion Enterprise.

Work Cited

Duggan, Daniel. “Champion Enterprises Inc. files Chapter 11 bankruptcy.” Crain’s Detroit Business, November 16, 2009.

"COMPANY NEWS; CHAMPION ENTERPRISES NAMES PRESIDENT AND CHIEF." The New York Times, July 14, 2004.

"COMPANY NEWS; CHAMPION TO LAY OFF 1,000 AND CLOSE 4 PLANTS." The New York Times, Sept. 6, 2003.

"COMPANY NEWS; CHAMPION ENTERPRISES HIRES A NEW CHIEF AS DEBT RISES." The New York Times, July 1, 2003.

"CHAMPION ENTERPRISES AND REDMAN IN TALKS." The New York Times, August 15, 1996.

Other Web Sources:

http://www.mobilehome.net/manufacturer_history/champion_enterprises_inc.htm

https://us.etrade.com/e/t/home

http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code

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