The former owner of the Beverly factory files for bankruptcy | News, Sports, Jobs
LANCASTER, Pa. — Armstrong Flooring — which previously operated a hardwood flooring factory in Beverly before selling the operation in 2018 — announced Monday that the company has filed for bankruptcy.
Armstrong Flooring sold its wood flooring division to American Industrial Partners for $100 million in November 2018. The transaction included Armstrong’s six wood flooring manufacturing plants, including the Beverly plant. , which is now operated by AHF Products.
Randolph County Development Authority Director Robbie Morris said Monday’s news caused heartbeats locally until area residents realized that “Armstrong and the Beverly factory are no longer connected.”
“Armstrong Flooring, that company, sold its wood flooring division in 2018, creating AHF in Beverly,” Morris told The Inter-Mountain on Monday. “When this news of the bankruptcy first broke I received frantic calls and texts until everyone could figure out that Armstrong Flooring and the Beverly factory are no longer connected. It will have no impact on the Beverly plant.
“My understanding is that the wood flooring division was thought to be part of the financial drag on the business (for Armstrong) when they sold it,” said Morris. “Obviously that was not the case, as AHF Products is doing extremely well. Sales are extremely strong. They are hiring and continuing to hire and things are going well there.
Beginning in 2019, AHF Products oversaw an 85,000 square foot expansion of the Beverly plant, which is the nation’s largest prefinished solid hardwood flooring plant.
Armstrong Flooring announced on Monday that the company and some of its subsidiaries have filed for voluntary protection under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware.
Following an ongoing sale process, the Company intends to pursue the sale of its business through a competitive Chapter 11 sale process. The Company’s operations in China and Australia will not be included in the Chapter 11 filing, but they are part of the sales process.
“Our company and our team members have worked diligently to strengthen our financial footing in the face of several macroeconomic trends, including supply chain challenges, the current inflationary environment and the continued headwinds of the COVID-19 pandemic. 19”, declared Michel Vermette, President and Chief Executive Officer.
“With the support of our Board of Directors, we have determined that using the Chapter 11 process to effect a potential sale is the right next step for our company. As we have said previously, we strongly believe in the value and potential of Armstrong Flooring and are confident that this final action places us in the best possible position to preserve and maximize value for our stakeholders. In the meantime, we are open for business and remain firmly committed to our customers, suppliers and employees as we navigate the path forward. »
Armstrong Flooring, Inc., headquartered in Lancaster, Pennsylvania, operates seven manufacturing facilities worldwide. The company has been around for 150 years.