David Oreck, founder of a well-known maker of vacuums and air purifiers, says he’s upset his namesake company is in bankruptcy.
He says Nashville, Tenn.-based Oreck Corp. was a perfectly profitable company when he sold his stake in it to a private equity firm in 2004. He blames the firm, New York-based American Securities Capital Partners, for taking on too much debt and paying themselves too hefty a dividend.
American Securities says the company struggled in the face of increased competition, a recession, and Hurricane Katrina which sacked it’s manufacturing plant in Gulf Port, Miss., and that it did what it could to turn its fortunes around.
A bankruptcy court is sifting through the wreckage now, and Mr. Oreck hopes his family can buy the company back in a bankruptcy auction.
Mr. Oreck is also out with a book this month, “From Dust To Diamonds,” in which he details how to run a business the right way. He says he hopes his namesake company’s chain of private equity owners will read it.
Mr. Oreck, meanwhile, will turn 90 this year, and hopes he has enough time left in his life to turn his namesake company back around. “At age 90, when they ask you, ‘what do you have to look forward to?” the answer is. ‘tomorrow,” he laughed in a telephone interview.
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