Business Reorganization and Bankruptcy Subpractice Group
214-210-2929
facebook
linkedin
rss
twitter
youtube
google_plus
email
  • Home
    • Bankruptcy Group Home
    • Firm Home (Other Practice Groups)
  • Attorneys
  • Offices
    • Dallas
    • New York
  • Services
  • Industries
  • Bankruptcy News / Blog

Bankruptcy 363 Sale: Court Approves Sale of Oreck Assets to Hoover

July 17, 2013
by Richard G. Grant
363, bankruptcy, Chapter 11, Hoover, Oreck, Year 2013
0 Comment

Oreck Bankruptcy Court Approves sale of Oreck bankruptcy assets to Hoover

Hoover outbids the Oreck family at the 363 Auction of Oreck’s assets.  The Bankruptcy Court approved the sale of the Oreck assets to Hoover on Tuesday.

Motion to Sell to Hoover under Bankruptcy Code Section 363

On July 16, 2013, the United States Bankruptcy Court for the Middle District of Tennessee approved the sale of Oreck’s assets  to Royal Appliance Manufacturing Co., the Ohio-based subsidiary of TTI Floor Care of Hong Kong, the manufacturer of Hoover vacuum cleaner.  Hoover is paying $17.25 million in cash plus the assumption of certain debts and liabilities (totalling over $25 million).

Royal outbid the Oreck family to acquire the assets at the 363 sale auction by approximately $1.0 million.  Oreck’s founder, David Oreck, and other family members pooled together money for a bid that was originally valued at about $22 million to open the auction, which lasted eight hours on Monday.  A subsidiary of Hong Kong-based Techtronic Industries Co.  offered a winning bid of more than $24 million and said it plans to keep Oreck Corp.’s 250-worker plant operating in rural Cookeville, Tenn. Company officials haven’t decided what to do with Oreck’s roughly 95 retail stores but are considering letting existing franchisees and employees take some over.

Royal has said that it plans to keep the Oreck factory in Cookevill, Tenn, retaining all of its 200+ workers.  Oreck’s Nashville headquarters will close.  (Oreck had moved certain of its manufacturing facilities from New Orleans to Nashville after Hurricane Katrina.)

Approximately 250 Oreck factory outlet stores will remain open.

Oreck Corp. filed for Chapter 11 Bankruptcy protection on May 6, 2013 in the United States Bankruptcy Court for the Middle District of Tennessee. The lead case No. is 13-04006, the associated cases are within case Nos. 13-04008 through 13-04017. The case is pending before the Honorable Keith M. Lundin.

Royal Appliance Manufacturing Co. / TTI Floor Care North America

TTI Floor Care North America is the U.S. arm of the Hong Kong conglomerate TTI, which also owns power-tool and outdoor-power-products brands Ryobi and Homelite, among others. The company’s annual sales total $4 billion, with about one-fourth of that in vacuum cleaners and other floor-care products. TTI bought the Hoover brand in 2007. Most of TTI/Royal’s products, including the Hoover and Dirt Devil vacuum cleaners, are now made in China, although there are Hoover plants in El Paso, Texas, and Juarez, Mexico, as well.

History of Oreck

Oreck was founded in 1963 by David Oreck shortly after heMr. Oreck 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’s former CEO Doug Cahill said he left in March after making several unsuccessful attempts to buy the company from its owner, Black Diamond Capital Management. Cahill said he felt the firm wasn’t supportive of the strategy he wanted to pursue. ”I didn’t like the direction they were taking or how they were dealing with us,” Cahill said, “so I resigned.” He said he was disappointed by what was happening. ”It’s hard to believe a 50-year-old company can be in this bad of shape in 50 days,” he said.

More about purchasing assets at a 363 sale

About the Author
Richard G Grant is the Bankruptcy and Chapter 11 Business Reorganization Practice Area Chair of Culhane Meadows, PLLC.
Social Share
  • google-share
Culhane Meadows PLLC \ Business Bankruptcy \ Bankruptcy 363 Sale…

Bankruptcy Practice Areas:

Company (Debtor) Representation
Secured Creditor Representation
Unsecured Creditor Representation
Creditors' Committee Representation
Landlord Representation
Asset Sales | Purchases
Trustee Representation
Industries
Firm Contact Information
Testimonials
Sitemap

Note:

For nonbankruptcy services including Corporate and Business Services, Intellectual Property, Technology and nonbankruptcy Litigation and Dispute Resolution, please visit the Firm’s Primary Website.

In the News:

Best Lawyers in Dallas 2016 - Bankruptcy
Four Partners Named Among “Best Lawyers in Dallas” by D Magazine | 2016
Aug 17, 2016
Triangle USA Files Chapter 11
Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016
Jul 07, 2016
Hercules Bankruptcy
Hercules Offshore Files For Chapter 11 Bankruptcy Protection | June 6, 2016
Jul 05, 2016
Supreme Court | Wellness | Stern v. Marshall
Supreme Court Will Review Jevic to Rule on Structured Dismissals and Gift Plans
Jun 29, 2016

Group Contact Information

Richard G. Grant 214-210-2929 rgrant@culhanemeadows.com

Disclaimer:

*For information Technology Law, Culhane Meadows received a Tier 1 ranking in Atlanta, GA and a Tier 3 national ranking. This website and the communications herein may be considered attorney advertising. Previous results are not a guarantee of future outcome. This website is for informational purposes only and does not constitute legal advice. The information herein is not intended to create an attorney-client or similar relationship. Please do not send us unsolicited confidential information. Whether you need legal services and which lawyer or law firm you select are important decisions that should not be based on this website alone.

Contact Us:

Live on Twitter

Tweets by @chapter11dallas

Subscribe to CM Bankruptcy News:

Bankruptcy News:

Best Lawyers in Dallas 2016 - Bankruptcy
Four Partners Named Among “Best Lawyers in Dallas” by D Magazine | 2016
Aug 17, 2016
Triangle USA Files Chapter 11
Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016
Jul 07, 2016
Hercules Bankruptcy
Hercules Offshore Files For Chapter 11 Bankruptcy Protection | June 6, 2016
Jul 05, 2016
© 2013 – 2016 Richard G. Grant, P.C.
Designated lawyer responsible for this website: Richard G. Grant