FreedomRoads Files Lawsuit to Recover Unpaid Loan to Tumbleweed Tiny House Company

Rhea-AI Summary

FreedomRoads, a subsidiary of Camping World Holdings, filed a lawsuit against Tumbleweed Tiny House Company's President Steve Weissmann to collect over $3 million owed under a secured promissory note. This stems from Tumbleweed's default on payments since January 2020, following a bankruptcy petition filed in March 2020. The lawsuit seeks damages that include unpaid principal, interest, and legal fees.

Positive

• None.

Negative

• Tumbleweed defaulted on over $2.5 million in loans, impacting FreedomRoads' financial position.
• The total amount due in the lawsuit exceeds $3 million, including unpaid principal and interest.

FreedomRoads Holding Company, LLC (“FreedomRoads”), an indirect subsidiary of Camping World Holdings, Inc. filed a lawsuit against Steve Weissmann (“Weissmann”), President of Tumbleweed Tiny House Company (“Tumbleweed”), a recreational vehicle manufacturer, to collect money due under the terms of a consolidated secured promissory note (the “Note”), which Defendant personally guaranteed.

FreedomRoads lent Tumbleweed over $2.5 million over the course of ten loans in 2017 and 2018 to help fund Tumbleweed’s growth. Tumbleweed defaulted on the Note when it stopped making payments in January 2020 and all sums became immediately due and payable when Tumbleweed filed a bankruptcy petition in March 2020.

FreedomRoads filed the lawsuit against Weissmann for breach of contractual obligations. The lawsuit seeks damages in the amount of unpaid principal and interest, attorneys’ fees, and costs. At the time the complaint was filed, the total amount due was over $3 million.

About Camping World Holdings, Inc.

Camping World Holdings, Inc. (together with its subsidiaries) is America’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy, and our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly-trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enables us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle.

For more information, please visit www.campingworld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Camping World and other matters. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding expectations regarding our pending litigation. In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘could,’’ ‘‘intends,’’ ‘‘targets,’’ ‘‘projects,’’ ‘‘contemplates,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘predicts,’’ ‘‘potential’’ or ‘‘continue’’ or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K filed for the year ended December 30, 2020 with the SEC on February 26, 2021. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.

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FAQ

What lawsuit did Camping World Holdings file recently?

Camping World Holdings, through its subsidiary FreedomRoads, filed a lawsuit against Steve Weissmann of Tumbleweed Tiny House Company for over $3 million owed under a promissory note.

What was the amount loaned to Tumbleweed by FreedomRoads?

FreedomRoads lent Tumbleweed over $2.5 million across ten loans during 2017 and 2018.

When did Tumbleweed default on its loan payments?

Tumbleweed defaulted on its loan payments in January 2020.

What financial issues did Tumbleweed face?

Tumbleweed filed for bankruptcy in March 2020, leading to the breach of contractual obligations.

What is the current amount sought in the lawsuit against Weissmann?

The lawsuit seeks damages exceeding $3 million, including unpaid principal, interest, and legal costs.