Brewer Quality Homes, Inc. - Page 5

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               During the 1980s, the mobile home retailing business in                
          petitioner’s region of the country (Texas, Louisiana, and                   
          Oklahoma) endured another economic downturn, because of the oil             
          industry.  More than 45,000 mobile homes were repossessed in                
          Texas alone.  In petitioner’s basic trade area, 21 mobile home              
          retailers either went out of business or filed for bankruptcy.              
          Petitioner was one of only two mobile home retailers located                
          within 1 mile of petitioner that survived the 1980s’ economic               
          downturn.                                                                   
               During 1992 and 1993, the mobile home retailing business in            
          petitioner’s basic trade area endured another economic downturn.            
          Although petitioner survived this downturn, many other mobile               
          home retailers did not.  Nine of the mobile home retailers that             
          did not survive this downturn were located within 1 mile of                 
          petitioner on the US 80 corridor.  Petitioner again took                    
          advantage of the situation by buying at distress sale prices                
          mobile homes that lenders had repossessed and selling these                 
          mobile homes at regular retail prices.                                      
               Petitioner had about 16 employees during the early 1990s.              
          In 1996, petitioner had 22 employees, 7 of whom were in sales.              
               Petitioner’s business was operated as a sole proprietorship            
          from 1973 until petitioner’s incorporation, in 1977.  Petitioner            
          elected S corporation status as of January 1, 1987.  Petitioner             
          was a C corporation for 1988.  Petitioner elected S corporation             






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Last modified: May 25, 2011