The Mumford Companies, a Chicago-based business and real estate holding company, has purchased AdvanceCo., Milwaukee, out of receivership. Rollcast LLC, Pewaukee, Wis., had placed the business in receivership in March and announced it would close operations in May. Roughly 75 workers would have lost their jobs.
The workers continued to make parts for Caterpillar Inc. and other customers, however, and Mumford closed on the purchase in June.
“The old ownership just didn’t have the capital to invest in the business,” said Phil Mumford Jr. “We have to spend six months rebuilding the machinery, adding automation, making it more efficient.”
Mumford will shut down the bulk of Advance’s manufacturing as it retools. The 75 employees will have to reapply for their old jobs, with Mumford hoping to return to 75 employees in early 2016.
“We take a distressed company that has financial challenges and come in and bring in the fresh capital that buys some time do to the restructuring,” said Phil Mumford Sr. “In almost every case, there’s mostly good in these businesses.”