BRACEVILLE, Ohio (Feb. 23, 2010)—Denman Tire Corp. said it is considering shutting its operations unless it is able to refinance its debts or secure a buyer in the near future.
The decision would result in the closing of both Denman facilities—its construction, agriculture and mining tire factory in Braceville and its warehouse in Austintown, Ohio—as well as the termination of about 260 jobs. In the event of a closing, Denman's assets will be relinquished to its lender for liquidation.
Denman, which marked its 90th anniversary in 2009, has struggled to remain viable during poor economic conditions. The company's primary lender, CIT Group Inc., entered bankruptcy protection late last year and the tire maker's requests for a U.S. government loan went unanswered.
Richard Szekelyi, restructuring adviser for Denman, said the company was a victim of the downturn of the economy, and as a result, it will begin reducing operations while continuing efforts to 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,” Szekelyi said.
The company said it has informed its employees, union representatives, elected officials and other parties of the tentative closure. The company did not announce a deadline for acquiring financing or a buyer.
Denman had estimated sales of $75 million in fiscal 2008.