Difficulties extending a loan agreement and dealing with profit pressures have forced Wichita, Kan.-based Casco Molded Plastics Inc. into bankruptcy.
The company filed Nov. 12 in Wichita for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, according to Casco's lawyer, Edward Nazar of Wichita law firm Reynolds & Nazar. He said in a Nov. 24 telephone interview that a subsidiary, Casco Plastics Inc., filed Sept. 23 for similar protection.
The parent company's filing listed combined assets of $15.9 million and liabilities of $23.6 million, of which $7.3 million is secured debt. Casco opened for business in 1979.
The company employs about 480 and had 1997 sales of $45.5 million. Casco makes plastic products and components for Coleman stoves, Eureka vacuum cleaners, Vornado fans, Rubbermaid tackle boxes and other items, but it has experienced lower profit margins in recent years. A problem $6.5 million bank note expired June 30.
In Wichita, Casco has 51 injection molding presses with clamping forces of 15-1,200 tons.
In Texas, it runs 31 machines from 77-1,000 tons in New Braunfels and 29 presses from 77-1,000 tons in El Paso. The company may sell those operations.
Casco began the New Braunfels operation in 1992 and invested this year in plant systems for statistical process monitoring, coordinate measurement and color enhancement. The firm replaced some supervisors to upgrade experience levels. More computer-molding assembly work has boosted competition for plastics processing talent in the New Braunfels market.
Last spring, Casco sold a 100,000-square-foot plant in Winfield, Kan., to captive injection molder Calmar Inc. of City of Industry, Calif.