Oreck Corp., headquartered Nashville, TN has filed Chapter 11 bankruptcy protection, “in order to accommodate a sale as an ongoing business,” according to the company’s website. The statement on the company site indicated that Oreck is consolidating its assets and restructuring its financing under the protection of Chapter 11, and will continue to operate in the ordinary course of business while the sales process takes place.
“Oreck will continue to operate in the ordinary course of business while the sale process takes place, with authorized and exclusive dealers and other trade customers continuing to receive product for sale to ultimate consumers. It is anticipated that following the closing of the sale that plant operations and corporate headquarters will remain in Tennessee,” the site stated.
In 2003, American Securities took a significant position in Oreck and since that time has looked to expand the one-time direct sellers business model to include a greater proportion of retail sales. In 2007, American Securities and Oreck acquired Halo, a vacuum manufacturer that employed ultraviolet light as an adjunct to vacuum cleaning. In 2010 Oreck brought in Doug Cahill, former president of Doane Pet Care Products as the company’s president and CEO, with the goal of expanding Oreck’s retail business.
The company has since embarked on a major new product development effort, overhauling its traditional product line to encompass a greater proportion of models addressing trends in the current floor cleaning business, including models utilizing bagless technology as well as adding steam cleaners.