March 28, 2024

Newton Manufacturing sale progressing

HALO personnel set to be in Newton on Wednesday

The bankruptcy declaration and sale of a 106-year-old Newton company appears to have cleared a major hurdle.

Newton Manufacturing declared Chapter 11 bankruptcy in paperwork filed around June 1, and is being purchased by HALO Branded Solutions, a Sterling, Ill. company. Monday was the deadline for other potential buyers to bid on the company, and no new bids were submitted.

The transaction is still subject to court approval, with a 10 a.m. hearing set for Friday in U.S. District Court in Des Moines. HALO attorneys filed motions that allow for a sale of Newton Manufacturing within 30 days, so June 30 is set to be the transition date of HALO’s ownership.

Unless some surprising developments take place, Friday’s hearing should be the last courtroom procedure related to the transition.

HALO Vice President of Marketing Terry McGuire said Monday that plans are in motion to keep a permanent office “somewhere in Newton” that will employ about 12 people. HALO is currently searching for an appropriate location for such an office.

He and other HALO staff are coming to Newton on Wednesday to present much of this same information

McGuire said some of Newton Manufacturing’s 59 employees — depending on the complexity of their positions — will be retained for short periods, such as two, four, or eight weeks, to aid in the transition to HALO. He said those employees would receive “retention bonuses,” and anyone still on the payroll as of July 1 would become a HALO employee, and will receive their new employer’s benefits.

McGuire said some details are still being worked out, but some Newton Manufacturing employees who were employed at the time of the bankruptcy filing will receive severance packages. He also said Newton employees are allowed to apply for open positions at HALO’s Sterling facilities, and there will be at least a few new jobs created there as a result of absorbing Newton Manufacturing.

McGuire also said the company’s independently contracted sales force will have to contract directly with HALO. Contracts will be negotiated on or about June 30.

HALO Branded Solutions has been around for more than 60 years. It claims to have more than 900 account executives throughout the U.S. and a support staff of more than 300.

Newton Manufacturing President Mancil Laidig said, in a court statement, that sales and staff have gone from annual sales of $83 million, 167 employees and approximately 700 independent salespeople in 2000 to $26.2 million in sales, 59 staff and about 400 salespeople for the twelve months ending March 31, 2015.

“Our goal is to work with the HALO team to retain as many of our valued employees as possible going forward,” Laidig said in a news release earlier this month.

Newton Manufacturing was founded in 1909 by George Newton, but hasn’t made new products since a fire destroyed manufacturing facilities in 1943. The “Manufacturing” name was left intact for brand recognition. Newton Manufacturing has been employee-owned since 1988 as a specialty advertising company.

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com