ERJ staff report (TB)
Braceville, Ohio-- Denman Tire Corp. said it is considering shutting its operations unless it is able to refinance its debts or secure a buyer in the near future.
The decision would result in the closing of both Denman facilities--its construction, agriculture and mining tyre factory in Braceville and its warehouse in Austintown, Ohio--as well as the termination of about 260 jobs. In the event of a closing, Denman's assets will be relinquished to its lender for liquidation.
Denman, which marked its 90th anniversary in 2009, has struggled to remain viable during poor economic conditions. The company's primary lender, CIT Group Inc., entered bankruptcy protection late last year and the tyre maker's requests for a US government loan went unanswered.
â€œUnfortunately Denman was a victim of the downturn of the economy,â€ said Richard Szekelyi, restructuring adviser for Denman, in a press release.
â€œAs a result, the company has reached the difficult decision to begin reducing operations while we continue our efforts to secure financing and/or find a buyer. If these efforts are unsuccessful, there will be no other alternative but to close all of the operations.â€
The company said it has informed its employees, union representatives, elected officials and other parties of the tentative closure. The company did not announce a deadline for acquiring financing or a buyer.
Denman had estimated sales of $75 million (Euro 55.3 million) in fiscal 2008.
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Denman Tire considering closing from Tire Business (a Crain publication)