Rehrig International Inc. filed a voluntary petition for Chapter 11 protection from creditors Sept. 5 in U.S. Bankruptcy Court in Wilmington, Del. The firm is asking for approval for $12 million in debtor-in-possession post-petition financing.
The Richmond-based company made news just over a year ago when it was acquired by Woodside Capital, a Burlington, Mass., equity firm, and merged with rival United Steel & Wire Co., a metal shopping-cart maker in Battle Creek, Mich.
According to the filing, Rehrig is in the midst of a severe liquidity crisis and needs funds for its manufacturing. The filing said the firm needs to deliver carts by Thanksgiving, or earlier, for the busy holiday shopping season.
The company had debt of about $36.6 million as of Sept. 4, according to documents.
The Battle Creek Enquirer newspaper reported that Rehrig told the city it will begin closing the Battle Creek facility around Oct. 6, cutting about 114 jobs.
Officials at Woodside Capital and Rehrig did not return telephone calls.