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Oreck: Bankruptcy Filed, Buyer Sought

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Oreck: Bankruptcy Filed, Buyer Sought
[ Business]

Oreck Corporation, the vacuum cleaner and air purifier manufacturer, has filed for chapter 11 bankruptcy. The Tennessee company announced the bankruptcy on its website, stating that it will be consolidating its assets and restructuring as a part of the move. The bankruptcy, Oreck stated, is meant to help get the company in shape for a sale in the near future. The bankruptcy will be overseen by a bankruptcy judge in Nashville, Tennessee.

Oreck emphasized in its statement that its day-to-day operations will continue as normal. Retailers can continue to sell Oreck products as usual. From the company’s statement:

Oreck will continue to operate in the ordinary course of business while the sale process takes place, with authorized and exclusive dealers and other trade customers continuing to receive product for sale to ultimate consumers. It is anticipated that following the closing of the sale that plant operations and corporate headquarters will remain in Tennessee.

Oreck was founded in 1963 by David Oreck shortly after he left electronics company RCA. The company was originally a vacuum manufacturer for U.S. hotels, and Oreck claims today that more than 50,000 hotels around the world use its vacuum cleaners. The machines gained popularity among hotels for their light weight.

Oreck: Bankruptcy Filed, Buyer Sought
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  • Dee Burks

    Sean,

    David Oreck sold his interest in the company approximately 10 years ago to venture capitalists and has had no financial interest in the company since. At the time of the sale, the company was growing and in a very strong financial position. Over the last decade, Mr. Oreck witnessed these individuals place the company deeply in debt while paying themselves large dividends. They also moved in direct opposition to the original principles that made the company so strong.

    This so disturbed Mr Oreck, that he wrote and recently released a book entitled Dust to Diamonds that showed exactly what he did to make the company great and how other businesses can do the same thing. The bankruptcy filing now stands as proof that his business principles were right and if the individuals who took over Oreck, Inc had stuck to those ideas, they would be more than profitable enough today.

    Mr Oreck is very concerned about the fate of the 621 employees of the company most all of whom are Tennesseans and knows that the company can once again be strong and vibrant with the right leadership.

    Should you want to have a much more in-depth look at this situation, Mr. Oreck is available for an interview at your convenience. We can also send you an electronic copy of his book. You will see that he all but predicted this outcome and is the person to offer real solutions and prevent the loss of hundreds of jobs.

    We are helping arrange Mr. Oreck’s national publicity so please let us know if you’d like to interview him.

    Thank You

    Dee Burks
    Publisher
    TAG Publishing
    info at tagpublishers.com
    806.373.0114

  • http://N/A Mark Kloeckner

    Please provide all information possible regarding this situation.
    Thank you!

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