Court Appoints Receiver for Quaker Mfg. Co.
YOUNGSTOWN, Ohio — U.S. District Court Magistrate Judge George Limbert on Tuesday ordered the appointment of Compass Advisory Partners LLC as a receiver to handle the assets of troubled Quaker Mfg. Corp., according to documents filed with the court.
The appointment clears the way for a possible sale of the company and the retention of 115 jobs, which could happen as early as this week, sources say.
First National Bank of Pennsylvania filed a complaint June 16 in the U.S. District Court for the Northern District of Ohio against three entities — Quaker Manufacturing Corp., Quaker Enterprises LLC, and Quaker International Sales Corp. — claiming default on more than $4.8 million in notes, according to court documents.
Quaker, a Salem-based company that manufactures tooling for the automotive, recreational vehicle and outdoor power equipment markets, experienced a net loss of $2.4 million through the first eight months of fiscal year 2017 on total revenues of about $12 million, according to court documents.
Compco Industries, based in Columbiana, is interested in purchasing Quaker, sources tell The Business Journal.
Compco officials met with employees June 13 at Quaker and informed them that the company had signed a letter of intent with First National Bank to purchase the Salem manufacturer.
A separate company, Compco Quaker Mfg., was formed on June 14, according to documents filed with the Ohio Secretary of State.
Officials from Compco and Quaker were unavailable for comment.
Quaker employees received a letter June 9 from company president Fred Dannhauser notifying them that the plant may close as soon as June 20 should First National Banks “exercise its right to put a court appointed receiver in place.”
The company was also working with local officials and U.S. Rep. Bill Johnson’s office to save the plant from closing.
Copyright 2020 The Business Journal, Youngstown, Ohio.
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