When we hear about a company being bought by another entity, we often see it as a negative step. But while change can be difficult for any business, this type of change may be a wonderful opportunity for a New York company to grow and improve.
That's exactly what the CEO of New York Wire is saying about the company's recent move to sell. The 127-year-old company that makes wire mesh products has agreed to sell to an Alabama-based company for $8.8 million. The sale was made as part of a bankruptcy auction. The minimum bid was set at $8.1 million by the court.
The CEO explained that the company's financial difficulties started during the 2007-2009 recession. Things got even worse after an overseas manufacturing facility ended up having expensive and long start-up issues. These problems, as well as a few others, caused the company to default on some obligations. The bankruptcy filing shows the company has more than $12 million in outstanding secured debt, as well as more than $3 million in other obligations.
The sale won't lead to many changes in day-to-day operations, but there will be some improvements for the 240 employees, according to the CEO. The CEO has a very positive outlook on the sale. He says the company that is purchasing New York Wire is a family-owned business with a great reputation. He also points out that the sale price "speaks to the value of the company."
While some may see Chapter 11 bankruptcy proceedings in a negative light, a company may actually come out stronger in the end.