Clarren of The U.S. Bankruptcy Court Approved The Sale of The Company to Wurth Group

Judge Pat E. Morgenstern-Clarren of the U. S. Bankruptcy Court in Cleveland last Thursday, Oct. 27, approved the sale of the company to Germany's Würth Group for $3.9 million. She also waived the customary 14-day waiting period to close on the sale of a bankrupt company, thus allowing Würth to close the deal fast. "We hope to close on it by Nov. 1, " said Marc Strandquist, CEO of Würth 's Michigan-based Dokka Fasteners unit. He was in court representing Würth and will oversee Cardinal going forward as it continues to operate locally under its current president, John Grabner. Step one will be to resupply Cardinal, a maker of bolts and other fasteners, with working capital so it can buy more inventory. Four people are slated to be added to increase sales and to stabilize relationships with existing customers who need to know that Cardinal is secure financially, Mr. Strandquist said. Thereafter, he said, Würth will invest further in Cardinal to expand it. "We plan to bring in about $1 million worth of new equipment" over the next year, Mr. Strandquist said. The goal by the end of 2012 is to get Cardinal close to where it was before its June bankruptcy. Würth figures the company can reach sales of $10 million and a headcount of more than 50 employees by the end of next year, Mr. Grabner said. He said the company currently operates with fewer than 30 employees. Mr. Grabner always has maintained that Cardinal's basic business was good. It just wasn't growing fast enough to pay for investments the company made to get into the wind energy supply chain, and then its creditors cut access to the working capital Cardinal needed to grow. Now, Mr. Grabner said, the company should be able to resume its growth, only faster, with backing from Würth. "We will no longer have any restrictions on growth, " Mr. Grabner said. "The money was always the limiting factor. " As for Würth, it sees Cardinal as a long-term investment. It intends to keep the company operating at its existing location and under its existing name, which Mr. Strandquist said is a strong brand that Würth wants to sustain. Source: Chinafastener. Com