Citing the lingering effects of the recent recession, Mercer Industries, the Beaverton, Ore.-based manufacturer of Mercer Windows, announced that it is winding down its manufacturing operations.
According to a statement issued by company officials, “Shareholders, including the Mercer family, have gone to extraordinary lengths to sustain the company during the recent economic downturn, but the company does not have the scale to compete in an increasingly competitive market dominated by much larger corporations.
“The company is family-owned and incurred substantial losses since the recession and the family dedicated significant capital seeking to return to a self-sustaining and profitable level but it just couldn’t be done,” says Mercer’s chief restructuring officer Dan Boverman, who was brought on board to advise the company regarding its situation and options, and will now help manage the shutdown of operations.
The Mercer board of directors commissioned a third-party business and financial analysis of its manufacturing and sales operations which concluded that an orderly winding down of operations was the only course of action to preserve the remaining value in the organization’s assets, which include several proprietary window design technologies. The company hopes to sell the manufacturing assets, but cannot continue normal operations during the search for a qualified buyer.
“The business is too small to compete effectively within the industry,” says Boverman. “We are actively in discussion and seeking discussions with other window companies that may have an interest in acquiring the business or portions of the business and product lines.”
He adds, “It was inappropriate to maintain normal operations while we tried to find a buyer giving the magnitude of the losses we would have sustained if we had continued in a normal manner.”
Boverman states that the company is not declaring bankruptcy and plans to uphold all of its current orders and product warranties. He also says he is confident that all creditors will be paid in full.
The closure is projected to affect approximately 70 employees, including management, sales staff and production workers located at Mercer’s Denney Road location in Beaverton, Ore. Company officials say staffing will be adjusted to complete existing orders, after which the plant will be closed.
The company was founded in 1926 as Mercer Steel and most recently manufactured commercial and residential vinyl and aluminum frame doors and windows.