| July 9
July 9 The manufacturer of Hoover and Dirt Devil
brand vacuum cleaners was the winning bidder for rival Oreck in
a bankruptcy auction on Monday, offering at least $24.4 million
to outbid members of the Oreck family.
The bankrupt pioneer of the upright vacuum went on the
auction block with an opening bid that included about $14.5
million in cash from a group led by Tom Oreck, a former chief
executive of the company founded by his father. The total value
of Tom Oreck's bid, which included various assumed liabilities,
was estimated in court documents at about $22 million.
Oreck's business was acquired by Royal Appliance
Manufacturing Co, a unit of TTI Group of Hong Kong. TTI owns
power tool and consumer appliance brands such as Ryobi,
Milwaukee and Homelite.
The details of the winning bid will be made public before a
hearing to approve the sale, which is scheduled for July 16 in
the U.S. Bankruptcy Court in Nashville.
Parties to a bankruptcy auction often hammer out the final
terms of a sale agreement in the days after a winning bidder is
Oreck Corp said in a statement that Royal intended to close
the sale on July 24.
Oreck Corp was founded in 1963 by David Oreck, who began
selling upright vacuum cleaners to hotels. The company later
moved to selling its vacuums for the residential market and
today has approximately 250 retail locations.
The company has been through a string of private equity
owners since David Oreck sold it 10 years ago to American
Securities Capital Partners.
During the same time, British vacuum cleaner company Dyson
introduced popular bagless vacuum cleaners in the United States
and Hurricane Katrina forced Oreck to move its manufacturing -
and later its headquarters - from the Gulf Coast region to
Money raised from the sale of Oreck's assets will go toward
paying off the company's creditors.
The case is In Re: Oreck Corp, U.S. Bankruptcy Court, Middle
District of Tennessee, no. 13-04006