Arch Aluminum & Glass Co. Inc. of Tamarac, Fla., filed for Chapter 11 bankruptcy on November 25, but chief executive officer Leon Silverstein says the company is “not going away.”

Arch filed for Chapter 11 bankruptcy reorganization in the Southern District of Florida federal bankruptcy court. The bankruptcy filing does not include Arch’s Canadian holdings or Trulite. AWP, a subsidiary of Arch Aluminum and Glass which serves the residential door and window industry, is also included in the filing.

The company says it has reached an agreement to sell substantially all of its assets to an affiliate of Grey Mountain Partners LLC, a private equity firm located in Boulder, Colo.

“We are in the process of selling the assets and we will be out of bankruptcy in 45 days,” says Silverstein. “We are not disappearing. The sad truth is that we have spent five months trying to work out our situation with our banks that have been impossibly difficult to work with.

“It’s not what we wanted to do,” he added, “but it’s the only way we can do it. We are going to emerge with 75 percent less debt. We did this because we had to do so to restructure our balance sheet.”

Silverstein said he anticipated little change at Arch. “We have done a tremendous job of cost cutting and we are performing well. We just could not over come the amount of debt we had as we were a company built for growth.”

He added that there will be no employee changes at Arch and that the management team will remain in place. “My personality has not changed,” he said, adding, “We have found new partners that want to grow. We can’t grow with the debt we have and we have to restructure. It’s not our end. Unfortunately we are forced to go through this … we spent the last few months trying to avoid this but the banks have made it very difficult.

“In business, it’s always the survival of the fittest,” Silverstein added, “and this puts us in the position to survive and grow. We have new, deep-pocketed investors who want to grow and I fully expect us to do so in the future.

“This is not something we wanted to go through; I didn’t want to be first in this, but we plan to emerge stronger.”

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5 Comments

  1. Arch is victim of incompetent management and megalomaniac CEO.

  2. Arch in Columbus Ohio is a train wreck. We do as little business with them as possible. It’s amazing they still have any business here.

  3. THEY SHOULD FAIL!!!!! ARCH IS TRYING TO GET OFF PAYING BANKS AND MAJOR SUPPLIERS FOR TENS OF MILLIONS.WE THE DO IT BY THE BOOK GLASS COMPANIES WILL END UP PAYING THE PRICE.WE WILL NO LONGER USE THEM!!!!!!!!!!!!!!!!!!!!!!!

  4. Will the float glass companies that are in for tens of millions of $$ continue to support Arch, since the same management is in place?
    Why was there high debt?
    Will their past partners at Churchill get any money?

  5. I used to work for Arch for 12 years, made important changes to improve the
    production but every effort were futtile because the defective management.
    The staff is overpaid and dull. The new hiring is racialy oriented and nobody
    care about cualification of the newcommers. No quality control at all. Nobody
    cares about customers and service.
    Bobby was a serious person, but the actual “chiefs” are megalomaniacs
    and take care only of themselves.

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