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Old 05-08-2015, 08:22 AM
 
Location: TN/NC
35,190 posts, read 31,503,474 times
Reputation: 47697

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Heritage Glass has been running the old AFG Kingsport Glass plant and has apparently fallen into financial trouble. According to the article, it looks like the city owns the property, and the company is behind on its rent to the city, as well as not paying employees and some payroll checks bouncing.

The plant looked rusted and like it would need a lot of work to get back on the road for years now. I was surprised that anyone started it back up, and it looks like the city helped the project along financially.

I'm sure it's just a matter of time before this place goes belly up, but it's sad for the employees (and what were touted to be relatively well-paying jobs initially) and the city, who are all left hanging here.

Kingsport manufacturing company struggling financially, can't pay employees, other bills | Kingsport Times-News
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Old 05-08-2015, 09:00 AM
 
Location: Gray, TN
2,172 posts, read 4,639,459 times
Reputation: 931
Best hope is bankruptcy and sellout to someone with more capital. More likely, the numbers don't work and this business goes away.

Hopefully the property is worth what the city paid for it.
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Old 05-08-2015, 09:27 AM
 
Location: TN/NC
35,190 posts, read 31,503,474 times
Reputation: 47697
Quote:
Originally Posted by rccrain View Post
Best hope is bankruptcy and sellout to someone with more capital. More likely, the numbers don't work and this business goes away.

Hopefully the property is worth what the city paid for it.
I'm not sure if it was this article but I saw recently where they were the only manufacturers of some of the stuff they sell.

It's not like there would be a big market for glass plants.

I hope the city can sell it but I bet they're stuck with it for awhile. It's probably a matter of time til this place goes OOB.
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Old 05-08-2015, 11:41 AM
 
Location: Gray, TN
2,172 posts, read 4,639,459 times
Reputation: 931
I only disagree with you in one area. There is a huge market for glass plants, be it commercial, industrial, automotive, etc. Although possible, glass is not a fun thing to transport from China.

This however appears to be specialty glass - the problem could be that the market is too small or the margin is too low. Either problem could be mitigated by consolidating with a more efficient and better capitalized operation.

The truth of the matter is that you're correct: "It's probably a matter of time til this place goes OOB." Unfortunate, but true.
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Old 05-28-2015, 07:18 AM
 
Location: TN/NC
35,190 posts, read 31,503,474 times
Reputation: 47697
Operations have shutdown unless some investor steps in to save it.

Heritage Glass suspends operations | Kingsport Times-News
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