Denman Tire issues closing notice
LEAVITTSBURG — Denman Tire has issued a 60-day plant closing notice for its factory here and warehouse in Austintown.
The 91-year-old tire manufacturer said Tuesday that the company will shut down operations unless the owner is able to find financing or a buyer.
Denman shut down its production earlier this month and laid off nearly all of its hourly workers.
Some workers said they were told the company did not have the raw materials needed to continue making tires for the construction, agriculture and mining industries.
The company said it has 260 employees who stand to lose their jobs.
If the company is closed, its assets would be relinquished to its lender for liquidation.
Richard Szekelyi, the company’s restructuring adviser, said the board of directors has worked for 10 months to refinance the Denman’s debts or find a buyer.
Denman has been struggling since the downturn in the economy in 2008, he said.
Sandy Pensler, who owns the business, said a year ago that Denman was losing money and might have to close.
He was seeking either government funds or purchases to turn the business around.
“If these efforts had been successful, Denman could have been a viable company,” Szekelyi said.