Distributor/supplier Kevco Inc. announced today (Feb. 5) that it filed Chapter 11 bankruptcy and that it reached a tentative agreement to sell its Design Components division to Adorn LLC of Elkhart, Ind., for $13.5 million.
Kevco, based in Fort Worth, Tex., filed its bankruptcy petition with the U.S. Bankruptcy Court for the Northern District of Texas.
The company, which primarily serves the manufactured housing industry, blamed the “unprecedented decline” in shipments of new manufactured homes for its financial difficulties.
Kevco has reached an agreement with its lenders “that provides sufficient liquidity to allow operations to continue with suppliers and customers.”
Meanwhile, the sale of Design Components to Adorn will be subject to bankruptcy court approval, certain adjustments and other conditions prior to closing, which his expected to occur on or before Feb. 28.