The outlook for Travelaire Canada is murky following the announcement on Tuesday that the Red Deer manufacturer’s parent company is bankrupt.
Edward Hanna, chairman and CEO of Glendale International Corp., confirmed in a statement that the Oakville, Ont.-based company has filed for bankruptcy protection. He said the economic downturn, rising loonie and higher gas prices have had a “devastating” impact on the recreational vehicle industry.
Travelaire, which has operated out of Red Deer since 1966, is a division of Glendale. In addition to RVs, it manufactures products like portable office trailers, medical campers, industrial skid shacks and park model homes.
Attempts by the Advocate to reach officials at Travelaire were unsuccessful, but Nick Stewart, president of United Steelworkers Local 1-207 — which represents workers at Travelaire — said Glendale’s announcement was a surprise.
Stewart said about 60 staff have been working at the 6702 Golden West Ave. manufacturing plant on a “sporadic” basis as orders come in. That number is down sharply from the more than 200 people who were once employed there.