Quaker Mfg. May Close June 20, Employees Warned
SALEM, Ohio – Quaker Mfg. Co. notified employees Tuesday that it may be forced to close the plant at 187 Georgetown Road as soon as June 20 should its senior secured lender, First National Bank, “exercise its right to put a court appointed receiver in place.”
A total of 115 salaried and hourly personnel stand to lose their jobs. “If required, Quaker plans to shut down the plant permanently,” said Fred Dannhauser, company president, in a letter hand-delivered to employees. The WARN Act Notice says the layoffs would occur over a 14-day period.
“This anticipated plant closure is contingent upon uncertain circumstances,” Dannhauser explained. “If a receiver is appointed, management of Quaker will be under the authority of the receiver as early as June 20, 2017. Given Quaker’s financial circumstances, and the possibility of a receiver taking control of the company as soon as June 20, we are providing this notice of plant closure, as required by federal law. …After June 20, plant closure and your future employment will be subject to a determination by the receiver (if one is appointed) and/or the financial capability of the company to fund operations beyond June 20.”
The letter did not specify how much the company owes First National Bank or the time frame of the delinquency.
Quaker Mfg., founded in 1962, manufactures and refurbishes the large tools used in metal stamping. Its tools and dies are used in the automotive, heavy truck, recreational vehicle and outdoor power equipment industries.
The company was featured last month in The Business Journal, at which time Dannhauser said it employed 250.
“The business is doing very well,” he said. “I’d say we’re up 10% to 15% year-over-year.”
A call to Dannhauser’s office late Tuesday was not returned.
Copyright 2017 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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