Irving to sell stake in Chinese tannery
US based Irving Tanning has advised that it is to put together a plan for reorganisation that will allow the business to emerge from Chapter 11 revitalised ‘in the next several months.’
In making the announcement, the Hartland, Maine company also said it had reached an agreement in principle to sell its stake in a Chinese tannery to its partner in the operation, Irving Schweizer Asia Limited.
Established early last year, the partnership was aimed at tapping the market for upholstery leather, utilising Irving’s existing shoe upper leather tannery in Guangzhou, China. (See leatherbiz.com story Irving Tanning and Schweizer Leather join forces in Asia - 19.3.01).
Within weeks, however, Irving was forced to file for Chapter 11 bankruptcy protection under the strain of mounting cash flow and raw material supply problems. (See leatherbiz.com story: Irving Tanning files for Chapter 11 - 03.04.01).
Once the sale has been concluded, the Irving Schweizer Asia name will disappear, to be replaced by ‘ISA Limited, a division of Tan Tec.’
