TORONTO - A management-led group has bought acrylic tableware producer Precisioncraft Ltd. of Brampton, Ontario, out of bankruptcy and renamed it Precidio Inc. Precisioncraft's cash flow was hurt by high materials costs and an oversupply of multicolored drinkware - such as cups and pitchers - in the marketplace, said Marc Heinke, vice president of Precidio and the former Precisioncraft.
The new owners bought 13 injection presses with clamping forces of 50-400 tons and related molding, decorating and sonic welding equipment. They paid C$2.1 million (US$1.6 million), subject to an undetermined reduction in price.
Heinke said Precisioncraft's sales last year were about C$12.5 million (US$9.3 million), up 10 percent over 1993. Most of its sales are in the United States, where it sells to department and specialty stores, and independent retailers.
Bankers forced Precisioncraft into receivership on Oct. 19, according to Robert Harlang, account manager with receiver Richter & Partners Inc. of Toronto. The receiver got a court order on Oct. 20 approving the sale of the firm's assets to the management-led group. On Oct. 23, Precisioncraft was forced into bankruptcy retroactive to Oct. 19.
Henry Sawatsky, former chairman and majority owner of Precisioncraft, did not return telephone calls placed to his home.
Edward Bekhor, a member of the purchase group, is president of Precidio. His home products retail experience includes aneight-year stint until 1992 as an owner and president of Para Paints Canada Inc. of Toronto.
Harlang said Precisioncraft's assets were sold right after the receivership, and before a creditors' meeting, because ``of the urgency'' of the situation. Bekhor said the new owners did not want the Precisioncraft reputation for quality and service to suffer from an interruption in business.
The liabilities of Precisioncraft amounted to about C$3.7 million (US$2.8 million), of which C$2.5 million (US$1.9 million) was owed to secured creditors, according to its bankruptcy statement of affairs.
Total assets were C$2.5 million (US$1.9 million), including C$560,000 (US$417,000) in fixed assets and C$1.2 million (US$894,000) in stock.
Heinke said Precidio now employs about 100 but it will boost that to about 200 early next year to meet the seasonal surge in sales for patio drinkware and other products that occurs in the January-to-June period. He said Precidio will put more emphasis on sales of nonseasonal products such as high-end acrylic stemware and novelties for steadier cash flow throughout the year.
Precidio has no plan to expand capacity. During peak demand, it contracts out about six presses' worth of molding for several weeks.
