Auto supplier Cadence Innovation LLC has started shutting down its operations, four months after entering bankruptcy proceedings.
Automakers have started moving molds out of shops owned by the Troy, Mich.-based molder as Cadence's plants close.
The firm filed notices with the state of Michigan that it will close four plants in Fraser, Mich.; and one each in Troy, Hillsdale, and in Clinton and Chesterfield Townships, near Detroit. Those eight plants employed a total of 780 people in mid-2008.
Cadence filed for Chapter 11 protection with U.S. Bankruptcy Court in Wilmington, Del., on Aug. 26, citing slowing auto production and increased raw material costs. The firm noted then that it had lost 20 percent of its sales in June and July. Auto production has slowed further since then.
The company is winding down its operations and preparing to liquidate its holdings, according to documents filed with the court. Cadence officials were not available to comment.
The company has been trying to sell its plants as ongoing operations but has not been able to finalize a sale.
Cadence opened in 2005 when creditors of Venture Holdings Co. LLC took the bulk of its plants out of Chapter 11 bankruptcy and launched a new business to mold interior parts, including center consoles, instrument panels and door panels.
The company had $746 million in annual sales last year.
The ongoing shutdown adds Cadence to a list of auto suppliers that entered Chapter 11 in 2008 but have not emerged. That list includes Plastech Engineered Products Inc., Blue Water Automotive Inc. and Progressive Moulded Products Ltd.