A Chicago plastics storage container maker will resume operations under new ownership following an 11th-hour deal just days before the equipment was scheduled to be auctioned.
Home Products International Inc. had shuttered two plants at 4501 W. 47th St. and 5507 S. Archer Ave. earlier this year under the continuing weight of high resin prices that forced the company to seek shelter through bankruptcy court. But i2Poly Inc. has stepped in to purchase assets of HPI, which owns the Homz brand of products, for $4.7 million, according to a July 12 filing in U.S. Bankruptcy Court in Chicago.
The deal includes 348 molds and 78 injection molding machines, mostly made by Milacron, with clamping forces ranging from 440 to 2,200 tons. That equipment has been used to make a variety of totes, tubs, carts and storage products.
When news first broke earlier in July that i2Poly was interested in acquiring the company's assets before they were auctioned off, a bankruptcy court filing indicated the buyer was willing to pay $5 million for equipment located at two sites as well as resin and the inventory of finished goods.
Bankruptcy court documents filed July 12 indicate the final purchase price ended up at $4.7 million, a number still higher than the $3.8 million HPI had anticipated from an auction.
It was in early June that HPI filed for bankruptcy court protection, indicating the company had been unsuccessful in finding a buyer. HPI, which also made ironing boards, found itself at the end of its financial rope and blamed rising raw material prices.