Anchor Hocking’s parent company, EveryWare Global, is to file for Chapter 11 bankruptcy and reorganize with secured lenders in a move to reduce long-term debt.
EveryWare Global, parent company of Anchor Hocking, is to file for Chapter 11 bankruptcy and reorganize with secured lenders owning 96% of the company, thus becoming a privately owned company. According to a company release, the move will reduce the company’s long-term debt.
The company expects to emerge from bankruptcy in 60 to 75 days after filing in the US Bankruptcy Court for the District of Delaware.
“We are pleased to have the support of our lenders to move forward with a restructuring plan that addresses our balance sheet to secure a bright future in our company,” EveryWare Global President and CEO Sam Solomon said in the release. “We have made considerable progress improving our day-to-day operations and this restructuring plan strengthens the company’s balance sheet for long-term success. We are confident that this plan is in the best interest of our customers, vendors, employees and our business partners.”
The company said it expects the business to operate normally during the restructuring process.
Lancaster-Fairfield County Chamber of Commerce President Travis Markwood said there is nothing to indicate that Anchor Hocking is closing.
EveryWare Global also said “the restructuring plan will create a sustainable capital structure that will ensure that the company is well positioned to invest in the business and pursue future growth opportunities.”
Lancaster Mayor David Smith said he’d like to think the filing is a positive step.
“This is a very business-minded company, and they’ve been solidifying a number of things,” he said. “They have brought in other executives to make it stronger and stronger. It looks like they know exactly what they are doing and are progressing accordingly.”
City economic development director Mike Pettit said the filing is a positive step for Anchor Hocking, EveryWare Global and the community. Fairfield County Economic Development Director Bob Clark said the move might appear to be negative on the surface, but that type of bankruptcy is one of restructure and that Anchor Hocking will come out stronger in the end.
“And I think over the years they’ve brought in a really solid management team that we have in Lancaster with EveryWare,” he said. “I’m confident in their ability to take this and to restructure the company in a proper way to maybe lengthen the debt or whatever the circumstance is to give them a chance to really grow and survive in this tough economy.”
The move comes after a rough 2014 in which the local Anchor Hocking plant and the Monaca, Pennsylvania, plant both shut down for a short time in the spring and workers here accepted wage and other concessions.
EveryWare first announced its difficulties last May when it abruptly shut down manufacturing operations in the Lancaster plant and in Monaca, idling most of the Lancaster plant’s 1,140 workers and Monaca’s 450 employees. Operations reopened in Lancaster about four weeks later, though a fire temporarily stopped them in early July.
The company last year announced a USD 38 million loss in the first quarter and voiced doubts about its ability to continue operations. It had been negotiating with lenders for extensions and financial solutions before Monomoy Capital invested USD 20 million into the company and ended the crisis.
Workers in Lancaster agreed to a 6% wage cut along with the loss of company contributions in their 401(k) plans, though the company instituted profit sharing for them.
This is not the first time Anchor Hocking has been involved in bankruptcy proceedings. Former owner Global Home Products filed for Chapter 11 bankruptcy to reorganize in 2006.
EveryWare Global was formed in 2012 through the merger of Anchor Hocking LLC and Oneida Ltd.
Isaac J. Collins opened the Hocking Glass Co. in Lancaster in 1905, and it started going by the Anchor Hocking name in 1937.
The Lancaster City Council in 2005 approved a 100% tax abatement on all machinery and equipment the company would buy for a 10-year period.