The company and eight related entities filed on Monday citing a “precarious financial position”, USA Today reports.
The Oreck family, led by ex-CEO David Oreck, hopes to buy back the company when it emerges from bankruptcy. Oreck was CEO of the company from 1997 to 2007 until he was forced out by the controlling shareholder, American Securities.
An attorney for the company said it would be filing for sale of assets by the end of this week. He stressed that any bid from the Oreck family would be subject to a competitive bidding process and that might take several weeks to complete.
David Oreck would not reveal details about the family’s offer or the negotiations. He did say that the family is “working diligently to negotiate a deal that would benefit the company.”