Oreck: Bankruptcy Filed, Buyer SoughtBy: Sean Patterson - May 8, 2013
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.