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Huffy files for Bankruptcy
Huffy Corp. filed for Chapter 11 bankruptcy protection Wednesday, as the 76-year-old bicycle and sporting goods company struggles with mounting losses and a heavy debt load.

Huffy has total liabilities of $161.2 million and assets of $138.7 million, the company said in a bankruptcy filing. In its long-delayed first-quarter results, released in August, Huffy said that it expected to post a loss of $70 million to $72 million, including $53 million in noncash charges.

The company said it plans to focus on bicycles and golf equipment after it restructures. Earlier this year, Russell Corp. bought the company's Huffy Sports unit, which makes basketball equipment, for $30 million. Huffy also sold its retail services unit.

In April, Huffy hired New York-based investment company Lazard Freres & Co. as an adviser, with the possibility of being put up for sale.

Huffy, which makes its namesake bicycles and Tommy Armour golf equipment, filed its case in the U.S. Bankruptcy Court for the Southern District of Ohio. Subject to court approval, it has received a commitment for $50 million in debtor-in-possession financing from Congress Financial Corp., the company said.

Suppliers have agreed to ship the company's products for the holiday season, Huffy said, adding that it can meet its commitments for the season and through 2005.

Citing the major factors in its decision to seek protection of the Bankruptcy Court, Huffy noted liquidity issues, significant operating losses associated with portions of its former Canadian operations, increasing public company costs, and mounting legacy costs associated with discontinued operations dating back to the 1950s.

The company did not give details of these items in a news release and a spokesman could not be reached to comment.

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