Tool and die company files for bankruptcy
Another tool and die company in the area has filed for bankruptcy.
Walker-based Taylor Tooling Group filed for Chapter 11 bankruptcy protection on March 15 in the U.S. Bankruptcy Court for the Western District of Michigan.
The 10-year-old company makes steel tool and die and CNC machining products out of a commercial building it leases at 4303 3 Mile Rd.
It was the second Walker tool and die company to file bankruptcy in the same week. The first was Die Tech Services on March 11.
James Taylor, who co-owns Taylor Tooling Group with Thomas Taylor Jr., says in an affidavit filed with the court that between 2017 and 2018, the business “suffered a loss of approximately $2 million in gross sales” and had to cut its workforce.
“The compounding effect of lost sales and resulting loss of workforce led the debtor to conclude it must file a Chapter 11 petition,” Taylor says in the filing.
The Taylors plan to continue in possession of their current property and operate and manage the business throughout proceedings under the terms of its lease.
Taylor says the company will “narrow the scope” of its manufacturing to “focus on a more profitable set of projects,” which will be possible because the company is continuing to receive new orders.
As of the bankruptcy petition date, Taylor Tooling Group owes $364,016 on a loan entered into in 2014 with First Community Bank. It plans to pay $2,000 per month during bankruptcy proceedings.
It also plans to pay “a percentage of claims” to its top 20 largest unsecured creditors, which include the Internal Revenue Service, Michigan Department of Treasury, city of Walker and 17 vendors and suppliers.
On its Nov. 1, 2018 profit and loss report, Taylor Tooling Group reported total liabilities of $1.12 million and total assets of $764,223.80. Its net income was $6,152.27.
Attorneys James Keller and Greg Ekdahl, of Keller & Almassian, are representing Taylor Tooling Group.
Judge Scott Dales is presiding.