AKRON, Ohio -- Plastics parts supplier Michael Day Enterprises Inc. has filed for Chapter 11 bankruptcy protection, and expects to be sold to Italy's Radici Group for $5.7 million, unless another buyer comes forward in the next 60 days.
Wadsworth, Ohio-based MDE made the filing Nov. 10 in U.S. Bankruptcy Court in Akron. The firm cited assets and liabilities each valued at between $10 million and $50 million.
In a Nov. 11 news release, MDE President Michael Cain said that the firm “has been negatively impacted by the recession, the accompanying downturn in our major markets and the tightening of credit markets.”
“This has made it increasingly difficult for us to obtain the capital needed to support our customers,” Cain said, adding that the firm will continue to operate during the bankruptcy process.
MDE employs 88 and posted sales of about $44 million in the first half of 2009. Most of the firm's sales come from the automotive sector, which has been pummeled by a downturn in auto sales and by the bankruptcies of General Motors and Chrysler.
Radici Group is a maker of plastics, chemicals and fibers based in Bergamo, Italy, with annual sales of $1.8 billion.
MDE is owned by plastics veteran Michael Day, who founded the firm in 1981. Cain has handled the firm's day-to-day operations since 2005, with Day remaining as chairman.