By John P. McDermott
The Post and Courier
CHARLESTON, S.C. — Bankrupt emergency vehicle maker American LaFrance LLC has shaken up its management ranks and brought in a new top executive as it tries to resume full production at its Summerville plant.
The company also said it is in the process of rehiring the workers who were laid off starting in December. It did not disclose how many employees it is recalling, saying in a memo only that it is restoring its payroll to what it was before its late January bankruptcy filing.
"The gradual ramp-up of our direct labor force signals clearly that we are successfully working through supplier parts challenges," wrote Bill Hinz, who until Monday was president and chief executive officer.
Hinz said he handed off those duties to A. Matthew Karmel effective immediately. Karmel, who has 25 years of manufacturing experience and a doctorate in mechanical engineering from Princeton University, most recently was president for the Asia-Pacific region at MAG Industrial Automation Systems.
Hinz remains with the company as chairman. He said in a statement that he will continue to play an active role in the bankruptcy reorganization.
"I will remain actively engaged with American LaFrance focusing on the strategic elements of the business while Matthew will immediately engage the tactical," he said.
In other high-level personnel changes, Hinz said executives in the finance and engineering units were "discharged" under an effort to align "our leadership to common goals." He did not identify the individuals or say how many were let go.
The company also said it is evaluating candidates to permanently fill the roles of chief financial officer and chief operating officer.
American LaFrance blamed its Jan. 28 bankruptcy filing on, among other factors, a depressed fire-truck market and a problem-riddled move from North Charleston to a new plant and headquarters off Jedburg Road in Summerville.
A changeover in computer systems resulted in a host of foul-ups that had "a crippling impact" on the manufacturer, according to court documents. Because the two software systems were not entirely compatible, financial information was lost in the transition. Also, inventory was in disarray and workers were unable to find the parts they needed.
Last year, American LaFrance lost more than $56 million on sales of more than $195 million, according to court filings. It temporarily furloughed about 100 workers for 30 days in December and later extended those layoffs until this month.
The company said Monday it recently released a new "achievable" delivery schedule to its customers, but it did not provide details. It also said it remains late on many of its fire-apparatus orders but is making changes to improve its inventory system and streamline its manufacturing practices.
American LaFrance is owned primarily by New York investment firm Patriarch Partners, which also is listed as the company's largest creditor.
Hearings on the proposed financial restructuring are scheduled for April 9 and April 18 in Wilmington, Del. The U.S. Bankruptcy Court already has approved a backup plan to offer the 176-year-old business for sale if it is unable to reorganize successfully. If that is necessary, a hearing on the auction would be held April 28.
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