Judge Approves TTI Acquisition of Oreck
July 17, 2013,
NASHVILLE, Tenn.-Judge Keith Lundin of the Bankruptcy Court for the Middle District of Tennessee, Nashville division, has formally approved TTI's acquisition of Oreck, which has been under Chapter 11 bankruptcy protection since May.
According to a statement from Oreck, the purchase has been made by OAC Acquisition Co., an affiliate of Royal Appliance Manufacturing Co., a TTI subsidiary. It gives TTI, already the parent company of the Hoover and Dirt Devil floor-care brands, another high-profile brand in vacuums. The Oreck statement said the acquisition is expected to close on July 24.
A TTI statement said the company plans to maintain production at Oreck's facility in Cookeville, Tenn. Simon Lawson, global president of TTI Floor Care, said the company will be reviewing the situation regarding Oreck's company-owned stores. Meetings with the Oreck team will be taking place over the next few days.
The Oreck statement said its June earnings statement showed sales of $10.1 million and net income of $167,000. As a result, the company reduced its loan balance by $257,000.