Scovill Fasteners Inc., the maker of snap-closure buttons for consumer and military clothing for more than two centuries with roots in Waterbury, sought bankruptcy protection from creditors with an agreement to sell virtually all its assets to Global Equity Capital LLC, Bloomberg.com reports.
The company, based in Clarksville, Georgia, listed $100 million to $500 million in debt and $10 million to $50 million in assets in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Gainesville, Ga., according to Bloomberg.com.
Scovill, with roots dating back to a small Connecticut button-making business in 1802, makes fasteners used in jeans and U.S. military garments, according to court documents.
“Scovill is currently suffering a liquidity crisis attributable to losses suffered after the closing of a China facility” that cost the company about $30 million, Chief Executive Officer Stewart Little said in a court filing.
The company agreed to sell almost all its assets to a unit of Global Equity that will act as the lead bidder at a bankruptcy auction, according to court documents. The Global Equity affiliate has offered $17 million in cash and the costs for assuming certain contracts, as well as taking on other liabilities.
