Shawnee Tubing Solutions, LLC has retained an investment banking firm to assist in the sale and preservation of its business, the company said Monday.
The company said a severe drop in its credit lines, from $33 million to $11 million, has produced a “cash flow crisis.” David Baker, of Aurora Management Group, has been appointed chief restructuring officer and is managing the business through a sale, the company said.
With 300 employees, STS said it is the third largest employer in Shawnee.
The investment banking firm of Equity Partners HG is working with the company, which manufactures a variety of industrial tubing for the HVAC and refrigeration industries, the company said.
“Given its tremendous capacity, its trained workforce, its customer base, and its great location, we believe that some well-funded strategic and financial partners will be interested in acquiring and operating STS in place,” Ken Mann of Equity Partners said in a statement issued by the company.
Equity Partners plans to find a properly capitalized buyer to keep the factory from shutting its doors.