Auburn Hills, Michigan, auto supplier Unique Fabricating Inc. has filed for bankruptcy despite the financial assistance customers General Motors Co. and Stellantis NV recently provided.
The company, which makes multi-material foam, rubber and plastic components, filed for Chapter 7 bankruptcy on Wednesday. It claims to have between 1,000 and 5,000 debtors and liabilities of $10 million to $50 million with the same value in assets, according to the filing.
The company “does not have sufficient capital to continue its operations,” so all of its employees will be terminated, according to the filing.
Unique Fabricating is headquartered in Auburn Hills and has facilities in Concord, Michigan; Lafayette, Georgia; Louisvillle, Kentucky, and other operations in Mexico and Canada.
As of December 2021, the company had 915 full-time employees, according to its annual report filed with the U.S. Securities and Exchange Commission.
The company could not be reached for comment Thursday. Stellantis declined to comment; the Detroit News has reached out to GM.
On Thursday, NYSE American said the staff of NYSE Regulation has started the process to delist Unique Fabricating since the company filed for bankruptcy.
In May, Unique Fabricating entered into a bailout agreement with GM, Stellantis’ subsidiaries and Yanfeng Automotive Interior Systems Co., three principal customers. They agreed to cover price increases or provide investment of up to $15 million to help the supplier, according to a filing with the SEC. The agreement was in place until Oct. 31 to give Unique Fabricating time to find a qualified buyer of the company.
Crain’s Detroit Business reported the bankruptcy earlier Thursday.
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