Country Coach founder quits board.

Byline: Tim Christie The Register-Guard

Bob Lee has quit the board of directors of National R.V. Holdings Inc., saying the parent company of Country Coach has refused to deal with "the ongoing crisis" that "threatens the very future of this company."

Lee founded Country Coach in 1973 and sold his company to National R.V. Holdings, based in Perris, Calif., in 1998. Since then, he has served on the corporate board.

But in his letter of resignation, dated Aug. 21 and filed Monday by National R.V. with the Securities and Exchange Commission, Lee said he no longer wants his name or "financial well-being" associated with the current board of directors, and that it's past time for CEO Brad Albrechtsen to resign

National R.V. has lost $77.2 million and posted red ink in 16 of 20 quarters since Albrechtsen took over as chief executive officer in September 2001.

In his resignation letter, Lee wrote, "I believe it is irresponsible to continue to retain a CEO who has lost some $80 million in a short period of time with additional losses a virtual certainty in the near future.

"I believe the Board's lack of action could create personal liability of directors to shareholders for the loss of this company. I no longer wish to have my name or financial well-being in the hands of this Board."

Lee was traveling Tuesday and could not be reached for comment.

National R.V. Holdings operates two divisions: Country Coach, which employs about 1,800 workers, making it one of Lane County's largest employers, and National RV, based in Perris.

National R.V. executives have said Country Coach is profitable and its factory has been running at full capacity. The National RV division, on the other hand, has struggled, laying off employees and operating at less than full capacity.

The latest blow came this year when a supplier provided allegedly bad fiberglass siding for National RV coaches, and the company was forced to repair about 70 motor homes, costing about $5 million.

In November, Lee and Bryant Riley, a Los Angeles investment banker, made a $92 million offer to buy National R.V. The board emphatically rejected the offer, saying it was woefully inadequate and severely undervalued the company.

At that time, National R.V. hired the Spartan Group, a financial adviser, to explore strategic options, including selling all or part of the company. To date, Albrechtsen has made no moves, instead saying his company was on the verge of turning things around.

In its SEC filing, National R.V. said it disagreed with Lee's comments.

Albrechtsen could not be reached for comment Tuesday. He told the Press-Enterprise newspaper in Riverside, Calif., that he was saddened by Lee's resignation and knew that Lee "had a high level of frustration."

"He had been in the industry for a long time and had a lot to contribute," Albrechtsen told the newspaper.

Salomon Kamalodine, an equity analyst with B. Riley & Co., an affiliate of Riley Investment Management LLC, the largest shareholder in National R.V. Holdings, said he was not surprised by Lee's resignation.

"My sense is (Lee) was probably alienated by the other board members" after his failed bid last November, he said.

Despite the corporate losses, the Country Coach division is "run well" and produces quality products that are in demand, Kamalodine said. But its hands have been tied by National R.V. Holdings' lack of cash, he said.

National R.V.'s stock, which was trading at $6.20 per share when Lee and Riley made their bid, closed Tuesday at $3.62 per share, its lowest price in more than a year.

Tim Christie can be reached at 338-2572 or [e-mail].