Harley-Davidson supplier petitions for Chapter 11 bankruptcy
June 22, 2007
Filed under Features
Converse Industries Inc., a precision machining firm that provides more than 30-machined parts for most of Harley-Davidson’s model groups, has petitioned for reorganization under Chapter 11 of the U.S. bankruptcy code.
Harley-Davidson generates more than 70 percent of Converse’s revenue, according to Converse’s owner Estelle Walgree, in an article in the Milwaukee Journal Sentinel. She also said that Converse and Harley’s relationship goes back to the 1990s when Converse attained the company that had been supplying Harley previously.
Converse is continuing to operate with 48 company employees, which is down from 57 earlier this year.
Converse owes its 20 largest unsecured creditors about $9.3 million, with about $3.3 million of that secured by company-owned collateral, a document filed by Converse shows.
Currently, Converse and its consultants are looking for someone who might want to buy the firm.