Newsline

Furnace manufacturer is closing its doors

May 2, 2000
/ Print / Reprints /
ShareMore
/ Text Size+
LAFAYETTE, IN — After 56 years of operation as a furnace maker here, Consolidated Industries Corp. is going out of business.

Operating more than 20 months under the protection of Chapter 11 bankruptcy, the company is closing down because of continuing financial problems stemming from lawsuits due to a product malfunction.

From 1982 to 89, Consolidated sold more than 800,000 attic-mounted horizontal furnaces. However, a problem with the heat exchanger in some units caused at least 40 fires in the installed homes.

There were no injuries from the fires, but there was considerable damage to the homes. That led to class-action lawsuits for millions of dollars being filed against the firm, which has an estimated net worth of between $6 million and $10 million, said Steve Ancel, an attorney for the company.

“There’s no way [Consolidated] could absorb those kinds of losses, or even cover the cost of defense against the suits,” he stated. “They filed for bankruptcy to stop the lawsuits and allow time to find solutions to the problem.”

He added that, “Chapter 11 has had an adverse effect on the business operations, continuing to reduce the amount of sales. It’s all catching up with us.”

Now, said Ancel, “The lender has declined to finance further. And without support, financing the company can’t continue.”

William Hall purchased the firm two years ago from a subsidiary of Welbilt Corp., Stamford, CT. He brought with him 30 years of hvac experience, but he was unable to overcome the company’s problems.

Consolidated is expected to close its doors by the end of March.

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.

Podcasts

NEWSMakers: Rajan Rajendran

Rajan Rajendran, newly appointed director of the Emerson Innovation Center, talks about the new $35 million facility and how it will function on the University of Dayton campus. Posted on Aug. 29.

More Podcasts

ACHRNEWS

NEWS 08-25-14 cover

2014 August 25

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Prohibiting HFCs

EPA is proposing a rule that would prohibit some HFCs in select refrigeration applications. Do you agree with this move?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con