HARPER BRUSH WORKS, INC. FILES CHAPTER 11 BANKRUPTCY PROTECTION
Iowa Manufacturer Begins New Chapter By Restructuring For Future Growth
FAIRFIELD, Iowa – Harper Brush Works, Inc., an Iowa-based broom and brush manufacturing company, announced on May 29, 2012 that it has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Iowa (USBC SDIA 12-01757 (ALS)).
Since 2002, Harper Brush has added production capacity to meet growing customer needs. With the loss of a significant customer in 2010, and carrying added debt from the expansion, the Company has experienced financial challenges. Under Chapter 11, Harper Brush will 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,” stated Marc Ross, Chief Restructuring Officer.
As a part of the restructuring process, Harper Brush is negotiating a new line of credit to provide ample funds for working capital, while arranging new long-term investment and financing opportunities. In addition to restructuring its balance sheet, the Company’s 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. 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,” said Ross. “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 which work from its headquarters in Fairfield, Iowa. At the current time, layoffs are not anticipated at the Fairfield location.
About Harper Brush Works, Inc.
Harper Brush Works is a 112-year-old Iowa-based broom and brush manufacturing company founded by Alphonso K. “A.K.” Harper in Fairfield, Iowa, where the Company currently operates. The Company has evolved from college students making brushes part-time, and traveling full-time in the summer selling Harper brushes from wagons; to having two locations in Iowa and North Carolina. Harper’s core products include: brushes, push brooms, mops, buckets, dust pans, housewares, long-handled cleaning tools, microfiber/dusting tools, and eco-friendly cleaning products. For more information, please visit www.harperbrush.com.