The Reuters news service reported yesterday that the TTI Group placed the winning bid for the bankrupt Oreck Corp. The news service related that TTI, the manufacturer of Hoover and Dirt Devil brand vacuum cleaners, offered at least $24.4 million to outbid members of the Oreck family for the company.
The formal bid reportedly was submitted by TTI’s Royal Manufacturing Co. subsidiary. A final ruling on the sale is expected to be made at a July 16 hearing in Nashville bankruptcy court, according to published reports.
In early May, HomeWorld Business reported that Oreck had filed for Chapter 11 bankruptcy protection, “in order to accommodate a sale as an ongoing business,” according to the company’s website. Oreck stated that it was consolidating its assets and restructuring its financing under the protection of Chapter 11, and would continue to operate in the ordinary course of business while a sale took place.
In 2003, American Securities took a significant position in Oreck and expanded on 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 vacuum cleaning enhancement. In 2010, Oreck named Doug Cahill, former president of Doane Pet Care Products, its 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 address trends in the current floor cleaning business, including production of bagless models and steam cleaners.
Queries to TTI and Oreck were not immediately returned.