Bankrupt custom injection molder Tri-Star Plastics Corp.'s assets will be up for auction June 25.
The Mississauga, Ontario, firm filed for bankruptcy May 5, after efforts to diversify from automotive work were unsuccessful. At the time, it listed assets of C$4.8 million (US$4.7 million) and liabilities of C$17 million (US$16.7 million). Liabilities include C$12.2 million (US$12 million) owed to unsecured creditors.
Tri-Star's main business after its founding in 1993 was automotive parts. At the time of its bankruptcy it had 130 employees in a 108,000-square-foot facility.
During the past four years Tri-Star lost several major customers due to bankruptcy or closures. The firm tried to offset the lost accounts with new business, but it could not establish a diverse customer base that would allow it to operate profitably.
Tri-Star came close to landing significant nonautomotive work, but much of it was transferred to Mexico and China, according to a statement from Tri-Star's trustee in bankruptcy, Grant Thornton Ltd. of Toronto.
Beginning in December, Tri-Star saw an abrupt decline in sales - as much as 50 percent from some customers. A combination of rising raw-material costs, sales declines and dim prospects plagued the private firm. The principal of the company, Bala Nagothu, tried to keep it afloat, even by seeking a buyer, but his rescue efforts were unsuccessful.
Tri-Star's assets will go on sale at its premises in an auction to be held by Infinity Asset Solutions. Assets include several late-model, large-tonnage presses. A 1,650-ton Engel, two 1,250-ton Engels, a Krauss Maffei 1,000-tonner and a Van Dorn Demag 2,000-tonner are among the numerous presses for sale.
Tri-Star was doing more than C$20 million (US$19.6 million) in annual sales in 2006, according to a company profile published that year in Canada's Financial Post.
