Denman files Chapter 7, will shut doors
Denman Tire Corp. has filed Chapter 7, a representative from the United States Bankruptcy Court Northern District of Ohio has confirmed. The struggling specialty tire manufacturer officially filed yesterday, March 17.
Earlier this year, Denman said it may cease operations if it could not secure financing or find a buyer.
Up for closure are Denman's 90-year-old plant in Braceville, Ohio, as well as its warehouse in Austintown, Ohio, a Youngstown, Ohio, suburb. Approximately 260 Denman employees will lose their jobs.
During the last 11 months, the Leavittsburg, Ohio-based company "had undertaken exhaustive efforts to refinance (its) debt or secure a buyer in order to continue operations," said Richard Szekelyi, Denman's restructuring advisor.
Chapter 7 is a court-supervised procedure that enables trustees to collect and distribute assets for and to creditors.
Pensler Capital Corp., a Princeton, N.J.-based private equity firm, is Denman's majority owner.