Wellington Management Corp. last week mailed a letter to investors informing them of its intention to sell its equipment division, according to theMilwaukee Journal Sentinel. According to the article, Wellington CEO Arnold Leas wrote: "We are currently pursuing selling the equipment operation and will keep you posted on the status of the sale." The letter did not name a potential buyer.
Wellington Equipment has been struggling for at least a year. In February, Leas informed debt holders that the company could not make interest payments on its debt because it was struggling to make payments to lenders. And last June Leas wrote a letter to partners saying they wouldn't receive their scheduled distribution for the same reason.
Investors in Wellington partnerships are concerned about the amount of debt Wellington has taken on to buy its equipment. According to Wisconsin Department of Financial Institutions records, there are 108 active lines filed against Wellington Equipment Corp. and its affiliates, with the creditors being mostly banks and equipment makers, according to published reports.
