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Sale of Auto Parts Maker on Tap

A buyer of bankrupt auto parts maker American Remanufacturers Inc. of Anaheim could be known as early as Friday.

The trustee in ARI’s bankruptcy case has scheduled an auction for Thursday in the Philadelphia law offices of Fox Rothschild LLP. Bids to buy the privately held company as a whole or in parts are set to be taken.

The winning bidder could be announced during a bankruptcy hearing in Delaware set for Friday, said Michael G. Menkowitz, an attorney with Fox Rothschild, which is handling the company’s sale.

ARI slipped into bankruptcy in early November, saying later that month that it would pursue a sale of the company’s assets instead of restructuring under federal bankruptcy protection. The company had failed to secure $30 million in financing needed to weather the down times.

ARI, based near the intersection of Orangethorpe Avenue and Kraemer Boulevard, let go its 750 workers in Anaheim in November. Before it halted operations, the company employed about 1,650 people worldwide.

“They just couldn’t right the ship,” according to ARI spokesman Marc Harlow.

It’s unclear what will happen to ARI’s two Anaheim buildings. The company leased the buildings, which have a total of 278,600 square feet.

An Anaheim official said the owners of the property, Crossroads Distribution Corp. of Simsbury, Conn., had notified the city that the industrial zoned buildings and 11.4 acres of land would be sold.

ARI’s machinery and other property in the buildings are set to be sold, Menkowitz said.

ARI made new and remanufactured “undercar” products, including axles, brakes and power steering components. Remanufactured parts are worn-out parts that get overhauled.

The company, which ran into trouble from overseas competitors and a surge in raw material costs, is one in a string of auto parts suppliers to have filed for bankruptcy this year. Others include Delphi Corp, Collins & Aikman Corp., Meridian Automotive Systems Inc. and Tower Automotive Inc.

ARI, which posted $270 million in annual revenue, listed assets of $10 million to $50 million and debts of more than $100 million, according to bankruptcy documents.

The assets for sale include the company’s facilities in Anaheim, Bedford, N.H., Independence, Ohio, and Phoenix.

The company had grown through a series of acquisitions during the past decade, pushing it to become the second largest remanufacturer of undercar auto parts in the U.S.

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