Report: Rockford Products To Be Split

Jason Sandefur

Rockford Products Corp. will be sold in two separate bankruptcy auctions, The Deal reports. Rockford Products is seeking to sell its Rockford Products International Group division separately from the rest of the company.
The employee-owned fastener manufacturer has not entered into an asset purchase agreement, and no auction is currently planned, though a sale hearing is set for August 30, according to The Deal. A second sale will be held for the rest of the company.
Rockford Products filed for Chapter 11 on July 25. Debtor-in-possession financing of $26.5 million was lined up before the company filed.
Founded in 1929 as Rockford Screw Products, employee-owned Rockford Products manufactures and distributes ball studs, cold formed fasteners and other specialty products. The company, which has 515 employees, reported 2006 sales of $101 million.
Slow automotive products sales and rising pension costs pushed company officials to seek court protection while they look for a buyer. Rockford Products has tried to grow globally. But the company lost a key $30 million contract when Whirlpool acquired Maytag in early 2006 and phased out Rockford Products as a supplier after finding suitable vendors in Mexico. �2007 FastenerNews.com