ABF Journal illustrator Jerry Gonzalez offers his portrayal of the Chapter 11 filing by vacuum manufacturer Oreck – assets of which are subject to a lien securing a $20 million line of credit from a lender group led by Wells Fargo – and the Oreck family’s bid to reclaim the company from Black Diamond Capital Management.
USA Today reported that Oreck’s future owner plans to keep the vacuum-cleaner manufacturer’s Cookeville, TN, factory open but give up 100 factory-owned outlet stores and close the company headquarters.
The WSJ reported that a Hoover brand owner was the highest bidder at the Oreck bankruptcy auction, squelching the Oreck family’s chance at buying back its namesake vacuum cleaner company.
Vacuum cleaner manufacturer Oreck has filed for bankruptcy and is seeking court approval for DIP financing to support a potential sale. A portion of the DIP will be used to purchase pre-petition first lien lender debt held by a group led by Wells Fargo.