It has been reported in U.S limo magazine LCT, and on DowJones.com that Krystal “Doesn’t have the cash to purchase parts to continue manufacturing vehicles.’
The shock news comes as the limo builder recently moved into the Chinese market and has spent the last three years developing its Lincoln MKT stretched limousine. It has been said that Krystal currently owns 51 vehicles at various stages of completion. If it were to complete the production of those 51 and sell them, along with the real estate it owns, the company would be able to pay secured creditors in full and provide a substantial distribution to unsecured creditors.
Mr Grech commented; ” Unfortunately, operators are still hurting and demand has been tepid. During the first quarter of 2012, these projects were halted due to the current economic climate both domestically as well as in Asia. We will not be idle during this time. Rest assured that Krystal is still committed to developing the most innovative and cutting-edge vehicles you can buy for luxury ground transportation, and the excellent customer service you expect from us will never waver.’
Ed Grech founded the company in 1982 and grew it from a small Southern California body shop into a global seller of limousines and buses that peaked in the last decade at an estimated $50 million in annual revenues.
It is unclear exactly how many staff may lose their jobs and there is currently no further information on Grech’s future plans for the company.