Reichhold Files For Bankruptcy

Reichhold, one of the world’s largest manufacturers of unsaturated polyester and coatings resins, has filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the District of Delaware. The Durham, N.C.-based firm was founded in 1927 by Henry Reichhold, who developed a fast-drying paint for the Ford Model T. The firm was acquired by Japan’s DIC in 1987 for $540 million. Reichhold was losing money in 2005 when DIC sold it to a management group for only $2.00, but three years later, the company said it was in the black. Reichhold had sales of $1.1 billion and about 1,300 employees last year. The company hopes to divest its U.S. operations over the next few months.