YOUNGSTOWN, Ohio – A prospective liquidation agent for the Schwebel Baking Co. estate guarantees a minimum of $3.1 million for the sale of the assets.

Attorneys for KCP Advisory Group, through Jacen Dinoff, the court-appointed receiver in the case of Spectrum Commercial Financial against Schwebel, filed a motion in federal court Thursday asking the judge to authorize employment of two liquidation agents. 

Those agents are Maynard Industries USA LLC and Loeb Equipment Supply Co., according to the filing. The motion also asks the judge to approve the guaranteed sale agreement and asset sale.

“To maximize the value of the assets and effect an orderly liquidation the receiver, in the exercise of his business judgement and in consultation with Spectrum, has determined that it is in the best interest of the receivership estate to retain a professional liquidation and auction firm to market and sell the assets by public auction and/or private sale, and to guarantee a minimum recovery to the estate,” the motion reads.

The liquidation agent guarantees the sale of the assets will receive a minimum of $3.1 million, it says. That amount “constitutes a firm minimum net amount payable to the estate and will not be reduced.”

Schwebel has ceased operations, and assets have been consolidated.

Assets when receivership began were spread across 19 locations. They have been consolidated at five locations: 935/965 E. Midlothian Blvd. and 920 E. Midlothian in Youngstown and sites in Hebron, Strongsville and Dayton, according to the motion.

The agent will schedule the auction to occur within 45 days following the judge’s order.

Spectrum filed the lawsuit earlier this year seeking $3.8 million plus interest, cost and fees it says it’s owed by the company. Other lawsuits, including those filed by several Teamsters locals, were consolidated with the Spectrum case, and the federal judge appointed the receiver in July.

Schwebel announced in June that it would wind down operations and that it expected to initiate liquidation of its assets. It said it has faced significant operational and financial constraints for years, citing among its challenges aging manufacturing facilities and equipment, costly labor contracts and pension obligations and consumer trends that depress demand for traditional bread and bakery products.