The Nashville-based vacuum maker has filed for Chapter 11 bankruptcy protection in a move to restructure its finances.
USA Today reports that vacuum cleaner maker Oreck Corporation has filed for Chapter 11 bankruptcy protection and plans to sell the privately held company. Under Chapter 11, a company consolidates its assets and restructures its finances in preparation for a sale.
Here’s an official statement found on Oreck Corporation’s website:
The Oreck Corporation, a manufacturer and marketer of some of America’s best-known cleaning and air purification products is consolidating its assets and restructuring its financing under Chapter 11 of the bankruptcy code in order to accommodate a sale as an ongoing business. The move will enable Oreck to sell the business while continuing day to day operations without interruption.
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.
Chapter 11 is a business reorganization proceeding under the federal bankruptcy law that allows a company to remain in control of its assets and operations while it seeks to reorganize or sell its assets. The process is under the supervision of a bankruptcy judge sitting in Nashville, but the company is authorized to continue its ordinary course of business without intervention by the court.
Headquartered in Nashville, Tenn., Oreck Corporation is a leading manufacturer in the homecare industry, offering a variety of vacuum, air purification and other cleaning products. Oreck sells its products in hundreds of Oreck Clean Home Centers, as well as through phone and online direct sales. The company distributes products in the U.S., Canada and parts of Europe.
When we reached out to them for comment this morning, a spokesperson with Oreck declined to respond beyond the statement provided above.
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