Fridge Maker Norcold Files for Bankruptcy
RV refrigerator manufacturer Norcold has filed for Chapter 11 bankruptcy, revealing over $300 million in debt and a plan to sell the business to Dave Carter & Associates, an RV components producer.
Founded in 1959, the brand is known for its gas absorption refrigerators. The company’s troubles appear to have begun in 2010 when recalls were issued on certain refrigerators that posed a fire risk. The recall triggered a flood of liability lawsuits, settlements, and then skyrocketing insurance premiums for the brand.
Compounding these woes, propane–electric gas absorption refrigerators are rarely used in new RVs. The RV industry in general has been moving to 12-volt DC compressor refrigerators, leaving the Norcold playing a game of catch-up. In 2022, the company shuttered its refrigeration unit manufacturing operations in the U.S., sourcing its units instead from overseas and laying off over 350 employees.
A further challenge is the consolidation of competitors, with companies like Lippert Industries having acquired a vast portfolio of brands and able to position themselves as a one-stop shop for RV manufacturers.
If You Have a Norcold Fridge
Norcold has stated it “expects and intends to continue to honor warranty claims and to pay vendors under customary terms” during the Chapter 11 process, but the long-term outlook is unclear.
Should Norcold discontinue production of all or part of the gas absorption refrigerator line, the parts for these are available from some aftermarket companies. Indeed there are more than a few companies in and around Elkhart, Indiana, that actually rebuild the gas absorption units and offer the ability to ship these components or rebuild an RV refrigerator right in their facilities.
Tony Barthel