All operating units of distributor/supplier Kevco Inc. are for sale as a result of Kevco’s Chapter 11 bankruptcy filing on Feb. 5, according to Stephen M. Pezanosky, Dallas-based attorney for Kevco.
The Fort Worth, Tex.-based Kevco hopes to keep all of its operating units opened so they could be sold as going concerns, Pezanosky added.
Kevco also announced on Feb. 5 that it hopes to sell its Design Components division to Adorn LLC of Elkhart, Ind., for $13.5 million. A hearing on the proposed sale is scheduled for Feb. 23 at the U.S. Bankruptcy Court for the Northern District of Texas.
Bankruptcy court approval is needed for the sale to be completed.
Kevco, which primarily serves the manufactured housing industry, blamed the “unprecedented decline” in shipments of new manufactured homes for its financial difficulties.
The company reached an agreement with its lenders “that provides sufficient liquidity to allow operations to continue with suppliers and customers,” according to a Kevco statement.
Kevco primarily is a manufacturer and distributor of building products used by RV and manufactured housing industry OEMs.
Since Kevco filed bankruptcy, most of its customers have switched their building products orders to competing supplier/distributors including LaSalle Bristol Corp. and Patrick Industries Inc., according to industry sources.