Interstate Equipment Sales and Rental, based in Richmond, Ky., with a branch in Lockland, Ohio, has filed for bankruptcy protection to restructure its debt, according to the Lexington Herald-Leader. The company, incorporated in 1994, buys, sells, leases, rents and repairs heavy equipment.
‚ÄúSince the fall of 2008, the company has experienced cash flow problems attributable to the nation‚Äôs economic downturn,‚ÄĚ the filing said. ‚ÄúThe demand for heavy construction equipment has fallen substantially, as have the market values for existing inventory.‚ÄĚ
The filing added that demand for the company‚Äôs service department has also declined, and that fiscal year 2009 revenues plunged from $59.9 million in fiscal year 2009 to $24.3 million in FY 2009.
The company has implemented a turnaround plan to reduce costs and improve operational efficiencies. The company is negotiating for a court order to allow continued normal operations.