Milwaukee-based Jason Industries, the parent company to a global family of manufacturing companies in the finishing and seating markets files for bankruptcy.
The company, which owns the brands Osborn and Milsco, said it has entered into a comprehensive restructuring plan that will ultimately deleverage the company’s balance sheet by $250 million and anticipates that the company’s vendors, suppliers and customers will remain unaffected by the
“Upon implementation of certain of the transactions contemplated by the agreement, the company will have the financial foundation necessary to continue to operate in the ordinary course of business, provide its customers innovative seating solutions and industry-leading surface polishing and finishing products, and realize the full benefit of its cost-savings initiatives and strategic investments,” Jason Industries said.
Jason employs more than 1,900 people in 13 countries. The company does not expect its operations outside of the US to be affected by the restructuring, but said those international operations will benefit in the long-term.
“The company is anticipated to emerge as a private enterprise, and equity holders are not anticipated to receive a recovery,” Jason said.
The news follows an April 6 announcement by Jason Industries stating it was considering strategic alternatives to right-size its capital structure and position the company for long-term growth, adding that it had engaged with an ad hoc group of first lien lenders.
Jason Industries reported its 2019 full-year sales on March 2, showing that full year sales of $337.9 million decreased 8.2 percent and that the company took a net loss of $43.4 million. In the fourth quarter of 2019, Jason’s sales decreased 5.6 percent year-over-year overall and 10.4 percent organically, with a net loss of $16.9 million.