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Ames Tools Completes Chapter 11 Reorganization

Tuesday, March 30, 2010

Ames Taping Tools, a major manufacturer of automatic taping and finishing tools, announced the completion of a financial restructuring and emergence from Chapter 11 bankruptcy proceedings.

Peter Alexander, the company's chief restructuring advisor, said the restructuring has allowed Ames to emerge with a "stronger balance sheet, enhanced liquidity, and a streamlined cost structure.

"Our company faced unprecedented challenges with the residential and commercial construction decline since 2006," Alexander said. "The New Ames will continue its heritage of product innovation and close customer relationships, while working to create new product lines and cost-effective solutions for the drywall industry."

Ames, owned by Axia Acquisition Corp. and based in Atlanta, is a manufacturer, marketer, and distributor of automatic taping and finishing tools used by residential and commercial interior drywall contractors for drywall joints prior to painting, wallpapering, or other forms of final treatment. Ames says it invented the tools, and operates an extensive tool-rental and sales business. The company was founded more than 70 years ago in California.

The company's principal business is the rental and service of its fleet of tools through a network of company-managed stores, franchised locations, and rental stations in the U.S. and Canada. The stores also sell branded hand-finishing drywall tools, supplies, and accessories. The company also sells tools under the TapeTech® brand through independent distributors and dealers.

Ames also said it has appointed a new board of directors, composed of individuals with "a wide range of skills and background." The board members are William T. Allen, chairman, CEO, and president of Werner Company; David Gilchrist, president and CEO of Robert Family Holdings; Steven Kunkel, managing director of AEG Partners; Christopher S. Brothers, managing director of Saybrook Capital; Philip Raygorodetsky, senior managing partner of GSC Group; Mark C. Hardy, partner of Aurora Capital Group; and Alexander, a turnaround consultant and former CEO of ORCO Construction Supply.