The atmosphere within the Escape Travel Trailer community is currently tense, bordering on panic. For those who own an Escape trailer or have one on order, recent developments regarding the company’s ownership and operational changes are causing significant concern. A major point of contention is the dismantling of Escape’s dedicated service department under the current management. This shift leaves owners seeking warranty work in a lurch, requiring them to find external service providers, adding extra hassle and uncertainty to the ownership experience.
Adding to the unease, Escape implemented a controversial lottery system for inventory trailers. This system allowed lucky winners to forfeit their existing orders and purchase a ready-made ‘Inventory Trailer’ available that week. The catch? Buyers had no say in customizations like colors or options and had to accept the trailer at a price determined by Escape. While this offered immediate gratification to some, it disrupted the standard order process and raised questions about fairness and customer choice. This practice, implemented when wait times stretched to approximately 26 months, may no longer be in effect, but it reflects a period of significant operational flux.
These changes stem from the acquisition of Escape Trailer by KV Private Equity Fund I. A post from the Escape Forum sheds light on KV Capital and its portfolio, revealing a pattern of acquisitions and divestments within the recreational vehicle industry.
KV Capital’s origins trace back to 2006 as The Mortgage Corner, a mortgage lending company. Rebranding as KV Capital in 2010, they continued in this sector until 2017, marking a shift with the inception of KV Private Equity Fund I. This fund initiated a series of acquisitions in the RV and boating sectors: Northern Lite (May 2017), Off Grid Trailers (October 2017), Escape Trailer (July 2018), and Campion Boats (October 2018).
However, KV Capital’s strategy took a sharp turn in August 2022 with the closure of Campion Boats. All assets were liquidated, and the property was listed for sale, signaling a significant contraction. KV Capital announced plans to revive Campion Boats through contract manufacturing, but details remain vague. Further restructuring followed in September 2022 with the divestment of Northern Lite & Off Grid Trailers to Tri-West Capital, a private equity firm with a broader and more diversified portfolio.
This series of rapid acquisitions and divestments raises concerns about the long-term prospects for Escape Trailer under KV Capital’s ownership. Adding to the uncertainty is the downturn in the mortgage lending market, KV Capital’s original core business. Reports indicate a substantial decrease in residential mortgages issued, impacting lenders significantly. Interestingly, KV Capital relaunched its Residential Mortgage Brokering in 2021, coinciding with their divestment from several recreational product manufacturers in 2022.
This financial context, combined with the operational changes at Escape, paints a picture of potential instability. While the hope remains that Escape Trailer and its workforce will navigate these challenges, the current situation is undeniably unsettling for owners and prospective buyers alike. The focus seems to be shifting away from long-term growth and customer-centric approaches towards financial maneuvering, leaving the future direction of Escape Travel Trailer uncertain.
