CHANDLER, Ariz. — Heavy equipment rental specialist Red Mountain Machinery recently filed a voluntary petition for reorganization under Chapter 11 bankruptcy protection. The Chandler, Ariz.-based company, with branches in Las Vegas and Riverside, Calif., was heavily impacted by the dramatic decrease in housing construction in recent years.
“As many of us are experiencing, the reduced demand for heavy equipment has eliminated equity in equipment fleets,” CEO and founder Owen Cowing wrote in a letter to Red Mountain's customers. “Being equipment intensive, this has been particularly troublesome for us. Though we have reduced our employee base to match our opportunities, we still offer, and will continue to offer, the best-maintained equipment rental fleet in the southwest.”
Red Mountain Machinery specializes in scrapers, articulated trucks, hydraulic excavators, motor graders and wheel loaders.
Cowing said the company will continue operations while taking steps to emerge as a financially stronger business.
“It actually is looking good for us,” Cowing told RER last month, adding that the company is “moving the majority of the assets back to Arizona.”
“We expect the infrastructure, construction and housing markets to normalize in the next 12 to 24 months and fully expect to be serving customers for many years to come,” Cowing added.
Red Mountain Machinery is No. 80 on the RER 100.