Quaker Mfg. Sale ‘Not a Done Deal’
SALEM, Ohio – Sources familiar with a potential purchase of Quaker Mfg. Corp. by Compco Industries, Columbiana, say the transaction is not a done deal and there are still “a few issues” that need to be resolved before any sale can move forward.
On Tuesday, representatives from Compco spoke to employees at Quaker, informing them that a letter of intent had been signed between Compco and First National Bank regarding the possible purchase of the plant, sources say.
However, sources caution that no sale has been agreed to.
Quaker employees last week received WARN letters notifying them that the plant may close, terminating 115 hourly and salaried positions. The company was also working “behind the scenes” through U.S. Rep. Bill Johnson’s office and local officials to help save those jobs.
The letter, signed by Quaker Mfg. Corp. President Fred Dannhauser, said that Quaker might be forced to close as soon as June 20 should its secured lender, First National Bank, “exercise its right to put a court appointed receiver in place.”
Officials from Quaker and Compco have not commented on any possible sale of the plant.
In a statement, Johnson said that his office is willing to work with any agency or entity in order to keep the plant open.
“I am willing to work with any group in an effort to keep this facility – part of the fabric of our community – open and running,” he said. “The employees and families of Quaker Manufacturing should know that their leaders are fighting on their behalf.”
Quaker Mfg., 187 Georgetown Road, is a metals stamping plant that manufactures tooling used in the automotive, recreational vehicle and outdoor power equipment industries.
Copyright 2023 The Business Journal, Youngstown, Ohio.