Global Fastener News

Rockford Products Hints At Buyers Amid Uncertainty

Jason Sandefur

Days after MacLean-Fogg Co. pulled out of negotiations, Rockford Products Corp. may have new buyers interested in buying its Cold Formed Products division.
Rockford Products’ financial consultant Mike Silverman told the Rockford Register Star that other buyers are interested in purchasing the company’s largest division, but more negotiation time is needed.
After filing Chapter 11 on July 25, Rockford Products successfully negotiated a deal to sell its retail fastener and auto parts line to RB Distribution, an affiliate of Dorman Products, for more than $3 million.
The unsuccessful attempt to sell its Cold Formed Products division was a substantial setback. Rockford Products had negotiated a $21 million credit deal with Bridge Finance Group to keep the company running through October in the expectation that new ownership would take over. Lacking that, the employee-owned fastener manufacturer now seeks a new multi-million dollar finance agreement to keep operating until January.
The uncertainty, however, has prompted one of its largest customers, Federal Mogul, to seek assurances in court that Rockford Products can deliver its orders, according to the Star.
In its first month after filing bankruptcy, Rockford Products reportedly showed a profit of $510,000, despite paying $533,631 to service its loan with Bridge Finance, the Star reports. However, the company reportedly has more than $11 million outstanding with its top 20 unsecured creditors, and a total of 900 creditors are owed undisclosed sums.
Founded in 1929 as Rockford Screw Products, 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. Web: rockfordproducts.com �2007 FastenerNews.com