Receivers take control of Islander RV

In late July the company was in court fighting to maintain control of the business after another lender, Wells Fargo, filed a court challenge to force Islander RV into receivership.

At that time, Wells Fargo claimed Islander had defaulted on payments several times and owed $5.9 million on an $8-million credit limit. Lawyers for BMO were also at that hearing, but did not specify how much money was owed to the bank.

Sources have told CBC News thatemployees were told on Monday to come backFridayto pick up their records of employment. At this stage it is not clear if the receiver will continue to operate the business, or if it will be sold.

Over the past few weeks Islander had hired Roche's Auctions to sell off 10 motorhomes and more than three dozen fifth-wheel and travel trailers from the Paddy's Pond location.

When contacted by CBC, Shawn Roche, owner of Roche's Auctions,said he's not sure ifthis Saturday'sauction will go ahead.

The items listed for auction included the Islander RV location in Grand Falls-Windsor, which closed last month, and a golf course in Hatchet Cove.

Islander RV is owned by Pat Squires, who also owns Eastbound International Speedway in Avondale and the Brookside Golf Resort.