Local media are reporting that USW workers at Denman Tire Corp.’s lone plant in Leavittsburg, Ohio, have been told that the troubled tiremaker is out of money and its banks are not extending credit.
Some 200 union workers met late last week for an explanation of why they were sent home earlier this month and instructed to not return until further notice.
While USW officials would not speak to the media, Denman workers said they were told during the two-hour meeting that Denman’s banks would not extend loans to the tiremaker. In addition, apparently the workers were told that “several parties” have expressed interest in buying the 90-year-old industrial and small OTR tire producer.
In March 2009, Denman owner Sandy Pensler said Denman would close its doors unless it received $3 million in government bailout money to purchased new equipment. That came on the heels of Denman laying off some 85 workers in early 2009; another round of layoffs came in late 2009.