Historic Denman Tire in trouble

Jan. 1, 2020
Established in 1919 by the late Walter R. Denman in Warren, Ohio as the Denman-Myers Cord Tire Co., the venerable Denman Tire Corp. is in danger of ceasing operations.

Established in 1919 by the late Walter R. Denman in Warren, Ohio as the Denman-Myers Cord Tire Co., the venerable Denman Tire Corp. is in danger of ceasing operations.

Focused on manufacturing tires for construction, agriculture, mining and other specialty industrial applications, a shutdown would eliminate Denman’s two remaining facilities in the Ohio communities of Braceville and Austintown.

“Unfortunately Denman was a victim of the downturn of the economy,” reports restructuring advisor Richard Szekelyi. “As a result, the company has reached the difficult decision to begin reducing operations while we continue our efforts to secure financing and/or find a buyer,” he explains.

“If these efforts are unsuccessful, there will be no other alternative but to close all of the operations,” says Szekelyi. “We have informed our employees, union representatives, appropriate elected officials and other interested parties of this tentative closure in accordance with the Worker Adjustment and Retraining Act of 1988 (WARN).”

Denman has struggled to maintain operations since the severe economic downturn in 2008, he says. “During the last 10 months, the board of directors had undertaken exhaustive efforts to refinance the company’s debt or secure a buyer in order to continue operations.”

The attempts thus far have been in vain.

The difficulties are “very sad for all of us,” according to Chief Technology Officer Tim Boyer.

“We have been working very hard to find a new owner and to raise necessary capital to continue operations,” Szekelyi says. “We also sought governmental support. If these efforts had been successful, Denman could have been a viable company.”

Officials are hopeful that they can secure financing or find a buyer. If going out of business is inevitable, about 260 workers will lose their jobs as the physical assets face liquidation.

The production staff is represented by the United Steel Workers of America. Several layoffs have occurred over the past few years.

“We hope the sale process is successful. If not, we hope to accomplish the cessation of operations and shutdown with the least possible disruption to the lives of our employees and the communities in which the company did business,” Szekelyi says.

Walter Denman was at the top of his profession as a mechanical and electrical engineer when he founded the firm following a series of associations with the Diamond Rubber Co., the B.F. Goodrich Co. and the Miller Rubber Co. Granted more than a dozen patents during his lifetime, Denman was instrumental in perfecting the first natural cord tire.

For more information, visit www.denmantire.com.

About the Author

James Guyette

James E. Guyette is a long-time contributing editor to Aftermarket Business World, ABRN and Motor Age magazines.

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