Former owner of Beverly plant files for bankruptcy | News, Sports, Jobs
LANCASTER, Pa. — Armstrong Flooring — which formerly operated a hardwood flooring plant in Beverly ahead of marketing the procedure in 2018 –announced Monday that the organization has filed for individual bankruptcy.
Armstrong Flooring marketed its wooden flooring division to American Industrial Partners for $100 million in November 2018. The transaction incorporated Armstrong’s six wooden flooring production vegetation, like the plant in Beverly, which is now operated by AHF Solutions.
Randolph County Progress Authority Director Robbie Morris mentioned that Monday’s information brought about some coronary heart flutters locally until place citizens realized that “Armstrong and the Beverly plant are no for a longer time linked.”
“Armstrong Flooring, that business, marketed off its wooden flooring division in 2018, which is what produced AHF in Beverly,” Morris instructed The Inter-Mountain Monday. “When this personal bankruptcy information initial broke, I acquired some frantic phone calls and texts until finally all people could recognize that Armstrong Flooring and the Beverly plant are no longer connected. This will have zero influence on the Beverly plant.”
“From what I fully grasp, it was imagined that the wood flooring division was portion of the drag on enterprise funds (for Armstrong) when they bought it off,” Morris reported. “Clearly, that was not the scenario, for the reason that AHF Merchandise is performing extremely nicely. Profits are extremely sturdy. They are choosing and continuing to employ and points are likely perfectly there.”
Commencing in 2019, AHF Solutions oversaw an 85,000-sq. foot enlargement of the Beverly plant, which is the greatest pre-completed sound hardwood flooring plant in the region.
Armstrong Flooring declared Monday that the organization and some of its subsidiaries have filed for voluntary safety below Chapter 11 of the U.S. Individual bankruptcy Code in the United States Bankruptcy Courtroom for the District of Delaware.
In a continuation of an ongoing sale course of action, the business intends to go on pursuing a sale of its company by means of a aggressive Chapter 11 sale method. The company’s organizations in China and Australia will not be involved in the Chapter 11 submitting, but they are element of the sale system.
“Our enterprise and group users have been working diligently to fortify our economical foundation in the confront of a number of macroeconomic trends–including offer chain challenges, the present-day inflationary atmosphere and continued headwinds from the COVID-19 pandemic,” said Michel Vermette, President and Chief Executive Officer.
“With the support of our Board of Directors, we have decided that using the Chapter 11 method to effectuate a likely sale is the ideal next action for our Organization. As we have reported formerly, we firmly imagine in the value and potential of Armstrong Flooring–and we are confident that this definitive action puts us in the ideal achievable position to protect and improve value for our stakeholders. In the meantime, we are open for business enterprise and continue being firmly committed to our shoppers, sellers and employees as we navigate the route forward.”
Armstrong Flooring, Inc., headquartered in Lancaster, Pennsylvania, operates 7 producing services globally. The organization has been in company for 150 a long time.