The company that owns and operates the Archer Creek Foundry in Campbell County has filed for Chapter 11 bankruptcy.
Intermet Corp., based in Fort Worth, Texas, makes metal castings used widely in the automobile
The company has suffered “revenue losses and cash flow issues brought on during the past 60 days of unprecedented low automotive sales volumes and high commodity prices,” according to a news release from Intermet.
The company announced its bankruptcy filing Wednesday. Chapter 11 bankruptcy protection puts a company’s debts on hold while it forms a plan to continue operations and pay the debts.
Intermet spokesman Gordon Cole said he was not aware of any layoffs recently or coming up at the
Archer Creek facility on Mount Athos Road, which employs at least 300
“We’re operating business as usual,” he said. “We’ll continue to meet our customers’ needs.”
He said the company will observe all of its operations in the coming months. “Any decisions regarding employment and operations … will be made on our business models.”
“Like automobile suppliers, (we) adjust our production according to our customers’ demand.”
Several automakers, including General Motors and Ford, have reduced production this year as high gas prices drove some buyers away from SUVs and trucks.
By filing for bankruptcy, Intermet is seeking authority to use its cash collateral to finance its operations and pay employees’ wages, salaries and benefits.
That will allow the company to continue operating while it restructures its debt, the news release said.
Cole said the company is not releasing a count of how many employees work at the Archer Creek facility.
A community profile by the Virginia Economic Develop-ment Partnership says the Archer Creek Foundry employs between 300 and 599 people.
In addition to the Archer Creek Foundry, Intermet also owns the New River Foundry in Radford.
Campbell County officials could not be reached for