Earthbound RV, one of the newest manufacturers in the industry, has shut its doors and is auctioning off its assets according to a report in the Indiana Economic Digest.
The auction for Earthbound’s assets is set to take place on Jan. 15 and will be used to repay a loan backed by the city of Marion, Ind.
The city backed a $2 million dollar loan in 2010 to help the startup. However, Earthbound failed to make a $155,000 loan payment.
“We’re auctioning off everything they have,” Marion Mayor Wayne Seybold told the Indiana Economic Digest. “There are a lot of assets to auction off. We’ll get as much money out of it as we can.”
Mayor Wayne Seybold said the city was exercising its right to sell the company’s assets to pay off the loan before economic development income tax (EDIT) money is used to repay the remaining debt, which is the bulk of the $2 million.
Earthbound’s goal was to build high-end towable travel trailers constructed of eco-friendly materials. Overall the company produced just 150 trailers while hiring about 50 employees until layoffs in July of 2011.