Denman Tire Corp. says it may cease operations if it cannot secure financing and/or find a buyer. "If these efforts are unsuccessful, there will be no other alternative but to close all of the operations," says Richard Szekelyi, Denman's restructuring advisor.
Up for closure are Denman's factory in Braceville, Ohio, and its warehouse in Austintown, Ohio.
Szekelyi says Denman is a "victim of the downturn of the economy," noting that the specialty tiremaker "had struggled to maintain operations since the severe downturn in the economy in 2008."
During the last 10 months, the manufacturer's board "had undertaken exhaustive efforts to refinance the company's debt or secure a buyer in order to continue operations," say Denman officials.
"Denman is hopeful that efforts to secure financing and find a buyer will be successful. If not, however, the plant will close," which will lead to the loss of 260 jobs. In the event of a closing, Denman's assets will be relinquished to the company's lender for liquidation.
"We hope the sale process is successful. If not, we hope to accomplish cessation of operations and shutdown with the least possible disruption to the lives of our employees and the communities in which the company did business."
