Cash-Strapped Van’s Announces ‘Recovery Plan’

Van’s Aircraft is curtailing normal business functions for two weeks as staff and management focus on saving the company from a serious cash crunch. As reported by KITPLANES Editor Marc Cook, Van's founder Richard VanGrunsven announced Oct. 27 that the process, to be aided by a business crisis consulting company, will address “serious cash flow issues, which must be addressed quickly to ensure ongoing operations. We are confident that we can work through this situation, but some changes are required,” he says. VanGrunsven, in the explanatory video above, said he and his wife have kept the company afloat for the past two months by lending it operating capital and that can't go on forever. Van’s posted an extensive explanation of the situation. (You can read it here.)

Van’s current challenges result from “a combination of significant events over a relatively short period of time [that have] increased costs, doubled normal inventory levels, slowed deliveries, and strained our cash flow to the breaking point,” the company says. It cites increases in manufacturing still evident from the COVID slowdown and quality control issues.

“Starting today through mid-November, Van’s will be focused on assessing the internal changes necessary to address these issues," the company said. “During this period, shipments will be delayed, kit orders will not be processed, and refunds will not be issued.” Business hours have been trimmed to 8 a.m. to 4 p.m. weekdays and builder assist calls will be limited to 8:00 to 9:30 a.m. and 3:00 to 4:00 p.m. on those days.