Shape Inc.'s recapitalization plan will help it expand its compact disc jewel box manufacturing facility in Dadeville, Ala. The Biddeford, Maine, custom injection molder will expand the facility sometime in its next fiscal year, which begins May 1, said spokeswoman Tracy Hartman. She said no other details of the project were available.
Shape announced Dec. 12 a $43 million recapitalization plan involving investment firms Sterling Ventures Ltd. and Oak Investment Partners, both of Westport, Conn. Under the plan, a group led by Sterling, Oak and Thomas R. Parkinson, Shape's president and chief executive officer, will invest $10 million in Shape. New credit will be provided by LaSalle Business Credit Inc. of Chicago and Rice Mezzanine Lenders L.P. of Houston.
Parkinson noted in a news release that the equity investment and an expanded line of credit will allow Shape to boost its capital spending programs, improve service and attract employees.
She said most company officials were unavailable for comment because of the holiday season and she could not provide details of the new ownership.
Parkinson was appointed president May 24, replacing Michael Thomas, who led Shape out of reorganization under Chapter 11 of the U.S. Bankruptcy Code last year. After his appointment, Parkinson said he would steer the company to higher-value-added products for computer and electronics industries.
Parkinson had been a Shape consultant since June 1993 and formed Shape Technology in Campbell, Calif., to develop new products. The new Shape division introduced injection molded cases to package and protect computer cards and other peripherals for mobile computing and communication devices.
Hartman said Shape has been molding the cases in Maine.
Shape had sales of $95 million for its fiscal year ended May 2, 1993, according to Plastics News' ranking of custom injection molders.
Hartman was unable to provide more recent figures.
Shape blamed its Chapter 11 filing in late 1988 on foreign competition, raw material price increases, overextension into new products and heavy research and development costs. When the firm exited bankruptcy in May 1993, Dow Chemical Co. and GE Capital were the largest shareholders.