If you recall, SK Hand Tools recently declared bankruptcy. It was rumored that Ideal Industries would make a bid to buy the debt-stricken hand tool manufacturer. This rumor has turned out to be true, although the sale has not yet been finalized
It turns out that SK Hand Tools did file a contract for sale to Ideal Industries. An auction is being scheduled so that the hearing for approval of sale can occur by July 26th.
SK’s assets and debt both exceed $10 million, and the selling price for the company will be $3.25 million unless there’s a higher bidder.
SK blamed their bankruptcy filing on “loss of customers, rising labor costs, and the recession.”
Info: Bloomberg via Toolamanjaro
Only $3.25 million, with a $10 million debt?!
Man, if I win the Powerball Jackpot tonight, SK will be MINE.
Well, they also have $10M in assets as well, but I cannot find any info about what they have more of.
I was also thinking that $3.25M is a pretty low bid. But, it’s going to take a bit of capital to pay off their debt and make them viable again.
Of course SK blamed everyone else but their execs for the bankruptcy.
Will Ideal tools have to assume warranties???
If Ideal still follows through with the purchase, then SK Hand Tools will likely become “SK Hand Tools, an Ideal company”. It won’t be absorbed into Ideal, so I would assume that warranty returns would still be handled with SK directly.
The only way to be sure is to wait and see what happens.