NAPERVILLE, Ill.—Interlake Material Handling, a large manufacturer of steel storage racks and a division of United Fixtures, has filed for Chapter 11 bankruptcy.
The news was reported by The Item newspaper in Sumter, S.C. The newspaper quoted Plant Manager Victor Jones, who said the filing was a preemptive measure that would allow the company to restructure.
“This is not a liquidation,” Jones said. “The biggest advantage to us is that it allows us to restructure our debt. It will allow us to obtain working capital in order to continue our operations and put us in a better position to be acquired by another company.”
Although there is no word yet about a final deal, Interlake is reportedly in talks with a potential buyer. “We have a buyer with a very strong balance sheet,” said Jones. “The sale has not been finalized yet, however.”
Jones also said the bankruptcy will not lead to a closure of the Sumter plant and predicted a bright future for Interlake in Sumter, S.C.
“This is a very positive thing for us,” he says. “If bankruptcy can be seen in a positive light, this definitely is. And, while I can’t speak for the future, especially if the company is purchased, at this time, we have no plans for further reductions in personnel.”