Armstrong employees receive potential shutdown notice

May 21—A major Stillwater employer informed the Oklahoma Office of Workforce Development on Friday that it was providing notice of "difficult actions that Armstrong Flooring, Inc. and several of its wholly owned subsidiaries ... may need to take."

According to Friday's letter, those difficult actions could include shutting down company facilities, including the plant located at 4115 N. Perkins Rd. that has manufactured vinyl flooring in Stillwater since 1987.

In 2020 the company reported that it employed about 80 people in Stillwater, but Stillwater Chamber of Commerce President/CEO Justing Minges told the News Press he believes the current number is higher because the plant added staff when it began making luxury vinyl tile in addition to sheet flooring.

Armstrong employees have been notified that if the company is unable to avoid closing facilities, their employment will end on June 17 or within two weeks of that date.

Armstrong Flooring, Inc. and three of its subsidiaries, AFI Licensing LLC, Armstrong Flooring Latin America, Inc. filed petitions on May 8 asking for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. According to lancasteronline.com, the company filed for Chapter 11 after missing a deadline from its lenders to find a buyer. The company has $317.8 million in total debt and $160.5 million in long-term secured debt.

Armstrong has cited increased costs for materials and supply chain issues as problems and said it could not raise prices enough to overcome them.

Armstrong is currently searching for a buyer.

Minges said some suitors have toured the plant in Stillwater — he doesn't know the companies they represented — and he has been hopeful someone would at least buy the Stillwater location.

He said he hopes if someone does buy the Stillwater plant, it will be a good company that will expand operations.

In the early 2000s, Armstrong employed about 200 people in Stillwater, including managers.

Armstrong's search hasn't yielded a deal with a buyer yet and the company continues to operate under temporary financing. According to the bankruptcy hearing schedule, a sale hearing was originally set for May 26.

There will be a meeting of the company's creditors on June 9.

Even if Armstrong is successful in finding a buyer, the deal won't provide enough to cover its debt and continue full operations, facilities, including the one in Stillwater, could still be permanently shut down.

"We are fully engaged in continuing our efforts to successfully complete the sale process and avoid the potential plant closures," Armstrong said. "We believe the sale process is the best path forward for our business, and we are striving for an outcome that strengthens our Company's operations while retaining as many employees a possible. As noted ... it is possible that plant closures may be required."

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