The Warren Electric Group, Houston, has hired a turnaround specialist and is working with its two largest suppliers to bolster its finances.
According to a letter written by Cheryl Thompson-Draper, the company's chairman of the board, chief executive officer and president, Warren Electric is working with Crouse-Hinds, Rockwell Automation, and two banks to guide the company through the financial difficulties it has had during the past 18 months.
John Draper, Warren Electric's vice chairman of the board and chief operating officer, said Warren Electric is reorganizing and has announced several management changes (See EM, March 29).
The company, one of the 20 largest electrical distributors in the United States, hired Randy Patterson, a turnaround specialist, to help reorganize the proud, family-owned distributorship. Warren Electric was founded in 1919, but began to establish its place in the industry in 1942 when the legendary J.R. Thompson and his wife opened the company's first branch in Houston.
Draper said the rumors circulating in the industry that Warren Electric has filed for bankruptcy are untrue.
“Like everybody else, this has not been the best year that we have had and we're working with it,” he said. “We've had tremendous support from our customers and our vendors and our bank.”
Draper is defiantly confident about the future. “Warren Electric has one of the strongest balance sheets in the industry. We are not going anywhere. We have a lot of support from a lot of good customers, good manufacturers, and that's what our industry keeps together on. We're doing just fine. All of us have a trying time from now and then and it seems like this is Warren's time. But we have a lot of support and we are going to pull right out of this. It's looking real good. A whole lot better than it was.”