Blaming heavy debt and a challenging economy, Champion Enterprises has filed for Chapter 11 bankruptcy.
The builder of manufactured homes is based in Troy, Mich., and as of January 2009, had two plants operating in Topeka, Ind. Daily operations are expected to continue throughout the reorganization.
In announcing the bankruptcy filing on Nov. 15, the company stated it expects the financial restructuring to include the sale of some of its operations. It also noted it has already received inquiries from a number of parties interested in the sale process.
William C. Griffiths, chairman, president and chief executive officer at Champion, outlined in a press release the steps Champion has already taken to reduce costs including closing or idling 15 facilities across the United States since mid-2006, cutting staff at operating plants as well as focusing on product offerings and multi-family, military and commercial markets.
"Our company has operated for many years with a significant debt load," Griffiths stated. "As we've had to downsize to keep up with the declining markets, this debt has become increasingly burdensome. Despite our best efforts to reposition the company for diversified growth, the continued challenging economic conditions both here and abroad have negatively impacted our capacity for debt."