Harper Brush Files Chapter 11
Friday June 1st, 2012 - 10:09AM
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Iowa-based broom and brush manufacturing company Harper Brush Works, Inc. has filed for Chapter 11 bankruptcy reorganization. Since 2002, Harper Brush has added production capacity to meet growing customer needs, but it stated, the loss of a significant customer in 2010 coupled with added debt from the expansion caused it to experience financial challenges.
Under Chapter 11, Harper Brush said it would be able to restructure its obligations while continuing to operate and meet the needs of its customers and employees.
"After careful consideration of our options, the board of directors and the senior management team believe that Chapter 11 is a necessary step to create a solid foundation for the future growth and success of Harper Brush Works," said Marc Ross, chief restructuring officer.
As a part of the restructuring process, Harper Brush is negotiating a new line of credit to provide funds for working capital, while arranging new long-term investment and financing opportunities. In addition to restructuring its balance sheet, the company said its objectives will be to maximize the revenue streams from its most popular products while eliminating the production of other, less profitable items. The filing listed assets and liabilities of approximately $10 million.
"We will continue to manufacture quality products which our customers have come to expect from us during our 112-year history," Ross said. "Our success as a company is largely due to the hard work and dedication of our highly skilled labor force and the great customer relationships we have built over our history. This step is being taken in order to ensure that our company is able to effectively serve those loyal customers for the next 112 years."
Harper Brush employs approximately 70 full-time and 5-10 part-time and contract labor employees company-wide, the majority of whom work from its headquarters in Fairfield, IA. The company said that, at the current time, layoffs are not anticipated at the Fairfield location.
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