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Fuller Brush Company files for bankruptcy protection
The Fuller Brush Company, which for many years has manufactured brushes used in cleaning machines and equipment around the world, announced today that it has filed protection from its creditors under Chapter 11 of the US bankruptcy code.
According to Chief Restructuring Officer, Lawrence Perkins, the filing was a necessary means to effectuate a reorganisation of the company in an effort to return it to profitability and restructure its balance sheet. The company has negotiated a new line of credit that provides immediate and ample funds for working capital while undergoing the reorganisation; it is also lowering its operating costs, while seeking to broaden its existing revenue streams.
"After careful consideration of Chapter 11 at this time the board of directors and senior management team believe this is a necessary step and the right thing to do for the future success of the company," stated Lawrence Perkins.
Fuller has 180 employees, the majority of which work from its headquarters in Great Bend, Kansas. The filing listed assets of between $10 million and $50 million, debts of between $10 million and $50 million. Lawrence Perkins further assured employees that it will be business as usual under Chapter 11. "Fuller Brush expects to pay employees wages and benefits and provide even greater levels of service to its customers," he said, adding that the company has multiple objectives while in Chapter 11, amongst them is maximising the revenue streams from the company's most popular products, while eliminating the production of other, less profitable items, obtaining the financing to reassure its employee, customers, and stakeholders that it is in business ; lowering operating costs to levels that will allow itto be more competitive in its markets, and driving growth through new market channels and focusing on its most valuable business/product lines.
Currently, the company sells branded and private label products for commercial and household cleaning and personal care. It produces more than 2,000 items including commercial and industrial cleaners, household cleaning aids, personal care products, lotions and healthcare aids.
23rd February 2012