ST. LOUIS – Challenger Powerboats Inc. had to lay off 58 of its 85 employees in March and is now pursing equity and/or debt financing to continue operations, the St. Louis Business Journal reported in a story this week.
In a report filed Tuesday with the Securities and Exchange Commission, Challenger said there can be no assurances that any financings will be consummated, and as a result, its operations may cease, the Business Journal reported.
The company said that in order for it to attain future profitable operations, it must attain additional capital to develop its proposed products and manufacturing processes.
Challenger reported revenue of $7.4 million in 2007 compared to revenue of $238,171 in 2006. The company lost $4.7 million, or $1.10 per share, in 2007 compared to a loss of $9.1 million, or $4.77 per share, in 2006. Challenger reported a loss of more than $2.4 million on revenue of nearly $1.8 million in 2005, the Business Journal reported.
The company is still paying for benefits for those employees who were laid off due to a slowdown in the company's operations, according to the filing.
Challenger Powerboats Inc. manufactures powerboats, tow boats and water-jet powered sport boats. The company has manufacturing facilities in Washington, Mo., and Fargo, N.D.
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