SELMA, Calif. — UpRight, a leading manufacturer of aerial work platforms, aluminum scaffolding and telescopic handlers, last month filed a voluntary Chapter 11 petition with the U.S. Bankruptcy Court. UpRight is the second major aerial manufacturer to enter Chapter 11 bankruptcy protection within a month, with Shady Grove, Pa.-based Grove Worldwide having filed in early May.

The company announced that it has temporarily suspended production of new equipment at its Selma and Madera, Calif., manufacturing facilities. Last week it abruptly shut down the two facilities and laid off about 800 workers.

“There is absolutely no question of UpRight exiting the aerial work platform business.”
— Ian Menzies, UpRight president

During the reorganization period, UpRight will continue to ship finished goods and focus on servicing its customer base by providing parts, training and technical support, company officials said. UpRight's international affiliates in Ireland, the Netherlands, Singapore and Japan are not part of the filing.

Company officials attributed the filing to “a sharp decline in recent customer orders, an overall slowdown in customer payments and the burden of the company's debt obligations… along with a general economic downturn.” A demand from the Union Bank of California for full repayment of a $20 million revolving line of credit was a major factor. Efforts to extend the payment schedule to the bank were unsuccessful.

The Fresno Bee last week reported that the company was already facing a serious cash crunch caused by a $13.3 million loss in 2000, declining demand and increasing energy costs. Industry analysts also blame rental industry consolidation for the company's difficulties, contending that tighter deals lowered margins for aerial product manufacturers.

UpRight president Ian Menzies said the company would resume production after a restructuring period. “With over 3,000 new and used units in our inventories worldwide, and the very apparent excess manufacturing capacities in our industry, we are temporarily suspending production of new equipment,” he said. “We recognize that we must continue to focus intensely on supporting our customer base with parts, service, training and evaluating what our customers would like to see emerge on new equipment. There is absolutely no question of UpRight exiting the aerial work platform business.” Menzies added that UpRight has retained a firm of consultants to assist in the planned restructuring of the business.

Although UpRight employees knew the company was in financial trouble, the sudden layoffs came as a surprise to many workers, causing some to contend that the company violated federal law by failing to provide adequate notice of the plant closures. While Rick Iobst, vice president for global operations, admitted, in an interview with the Fresno newspaper, the possibility that the company failed to provide adequate notice, he said company officials had hoped to keep operations going, until they realized it had become impossible.

Hundreds of laid-off workers came to the plant to pick up their tools last week and received their final post-dated paychecks in the company's parking lot.

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