Thursday, February 27, 2020

Native American Tribe Buys Cardinal Homes Factory

The Eastern Band of Cherokee Indians hopes to see a recent $5.8 million purchase by Kituwah LLC generate revenue for the tribe while simultaneously improving tribal members’ access to quality, affordable housing.

Kituwah LLC acquired the assets of Cardinal Homes, a bankrupt modular home company that’s based in Wyliesburg, Virginia, and employs 40 people. During the Feb. 6 Tribal Council meeting, which occurred prior to the sale’s closing, members voted 11-1 to approve a resolution allowing Principal Chief Richard Sneed to sign an agreement guaranteeing Cardinal $5 million worth of business per year for three years.

“This acquisition was a good fit for our portfolio,” Mark Hubble, CEO of Kituwah LLC, said in a press release. “This will allow us to provide housing to tribal members at a significant savings, while rapidly growing the manufacturing and retail sales of Cardinal Homes in the hotel and apartment sectors. We feel that with our financial backing and the strong leadership team at Cardinal, we can take Cardinal Homes to a new level.”

On Feb. 6, Hubble told council members that he expects the company to reach profitability within 12 to 18 months. The tribe’s agreement to purchase $15 million worth of inventory in the next three years will make that road a little smoother, and Cardinal will seek out other customers as well to achieve the roughly $11 million worth of annual business required to stay in the black.

CLICK HERE to read the entire Smoky Mountain News article

1 comment:

Bill Hart said...

Bill Bobbitt are you listening?