Renaissance Plastics Co., a Hudson, Ohio-based injection molder, filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on March 28, and announced plans to consolidate its two Rochester, N.Y., facilities into a single site.
The company filed for reorganization in U.S. Bankruptcy Court in Akron.
The firm's financial performance was hurt by a reduced demand for nonautomotive products, which was caused by offshore relocations of some of its customers, according to interim Chief Executive Officer Joseph Kokal. The recession in manufacturing and ``further economic retrenchment'' caused by the events of Sept. 11 also affected Renaissance.
``Renaissance Plastics may have been able to endure any one of these events,'' Kokal said in a March 28 news release. ``But the combination of these factors impacted our revenue and cash flow to the point that we were unable to service our debt and fund our business at the same time.''
The firm will merge its Nylomold Corp. unit in Rochester with its Amplaco Inc. division there. Renaissance's two other plants, operated as Ultra Tool & Plastics Inc. in Amherst, N.Y., will not be directly affected by the bankruptcy, spokeswoman Dana Coleman said.
Renaissance employs about 110 at Nylomold and 260 at Amplaco. No decisions on layoffs or transfers have been made, according to Coleman.
The Rochester consolidation is scheduled to be complete by July 1. Renaissance also has received $2 million in debtor-in-possession financing to meet its ongoing needs as it restructures.
Renaissance's 2001 sales were estimated at $78 million, but 2002 sales are expected to drop to $60 million to $65 million, Coleman said. Its four plants employed 690 and operated 146 injection molding presses.
Renaissance formed in 1998 when investors, led by Key Equity Capital of Cleveland, purchased Nylomold and Ultra Tool & Plastics. It added Amplaco to the fold in 1999.