AFTER FILING ITS CHAP. 11 BANKRUPTCY papers Monday, American LaFrance issued a press release done in a Q & A format explaining some of their actions and plans.  You can read the PR in its entirety HERE.

photo by Lee Wilson

Naturally, they only addressed the questions that they want to right now, but there is much that can be gleaned from the release.  The primary question for most Fire & Rescue people is, are they going to keep making fire apparatus?  They are emphatic in their public committment to remain in business and they say that they expect to have the assembly line in the main plant back up to full production beginning March 10.

They say that the “inventory problem” which caused them to slow down was a result of two factors.  One is their newly disclosed claim that when they purchased the firm two years ago from Freightliner the inventory was “not properly disclosed as obsolete.”  On the face of that statement, it appears that ALF considers that to be a litigable issue.

In addition, a newly-designed software from IBM that was developed to control their inventory records, flow and purchasing failed when it was put into use.  In their court papers ALF claims that IBM’s work on installing and transitioning to the new system contributed to inventory and production problems.  This claim has concerned IBM and they are not commenting on it just yet.

As part of the re-organization ALF will close its Lebanon, Pennsylvania, aerial refurbishment facility and combine it with their main aerial production plant in Ephrata, Pa.  That appears to be a common-sense decision anyway.

Also, they announced that they will be closing the ambulance manufacturing plant in Sanford, Florida, and discontinuing the construction of ambulances completely.  This is not surprising since the company has always been an apparatus builder.  The only reason they were building ambulances was to provide an additional sales outlet for Freightliner chassis.  That need is no longer there.

ALF photo

In an article yesterday in the Charleston Post & Courier it was told that a restructuring firm, Corporate Revitalization Partners, has been retained to get the business back on its feet.  They expect that by filing the Chap. 11 papers and providing a good restructuring plan, the major stockholder, Patriarch Partners, will infuse an additional $50 million into the business.  You will recall that LightRock has explained to us that holding companies are loathe to inject funds into a business unless they are assured that the investment will be returned in a timely manner with interest.

You can read the entire Post & Courier article HERE. 

Traditionalists that we are, fire and rescue people everywhere are hoping that this classic marque of the fire engine business is able to pull through this and remain a viable company.

Firegeezer will be watching it for you so that you can now turn your eye onto what’s going on at Seagrave.

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