Libbey, a person of the world’s most significant makers of glass tableware, filed for Chapter eleven personal bankruptcy on Monday, citing the “unprecedented” impact of the coronavirus pandemic on need for its items.
The corporation experienced been pursuing a restructuring of its harmony sheet even before the pandemic pressured it to close its factories in Toledo, Ohio, and Shreveport, La., and virtually shut down its cafe sales channel.
A seven-yr, $440 million bank loan was scheduled to experienced past thirty day period.
But Libbey said Monday that it experienced been “unable to offset the steep drop in sales” resulting from the pandemic, leaving it with no choice but to file personal bankruptcy for the 1st time in its 202-yr record.
“While we entered 2020 with positive momentum from our potent end in 2019, the remarkable and prolonged impact of COVID-19 on the need for our items and on our business enterprise is actually unprecedented in Libbey’s a lot more than two hundred-yr record,” CEO Mike Bauer said in a news launch.
Libbey’s loan companies have agreed to present up to $a hundred and sixty million in financing to continue to keep it operating throughout the Chapter eleven process. “Entering this process is a needed step to deal with our liquidity, fortify our harmony sheet and better position Libbey for the upcoming,” Bauer included.
The corporation, which was launched in 1818 as the New England Glass Enterprise, sells items this sort of as tumblers, stemware, mugs, bowls, shot eyeglasses, canisters, and candleholders via foods-service, retail and business enterprise-to-business enterprise channels.
Food-service sales in the U.S. and Canada have been declining owing to “take-out and delivery rising in popularity relative to in-cafe dining,” Brian Whittman, Libbey’s restructuring consultant, said in a court docket declaration.
Other headwinds, he said, have provided the migration of consumer getting from brick-and-mortar suppliers to on the net commerce and “increased competitive pressures in Latin The usa, as Chinese producers divert sales of their items from the U.S. industry to Latin The usa in buy to keep away from the increased tariffs imposed by the United States on Chinese imports.”
Bauer said Libbey is by now seeing some improvement in need with the gradual lifting of continue to be-at-home limitations and the resumption of output in Toledo and Shreveport.