Newton Manufacturing declares bankruptcy

Newton Manufacturing has declared Chapter 11 bankruptcy, and is being purchased by HALO Branded Solutions, a Sterling, Ill. company.

The company has signed a “definitive agreement to purchase the business assets” of Newton Manufacturing Company, according to a news release issued by HALO.

Newton Manufacturing began Chapter 11 bankruptcy proceedings Friday in federal court, and that filing was completed Monday.

“We have explored several options to resolve the difficult financial environment we have operated under for several months,” Newton Manufacturing President Mancil Laidig said in a news release. “It became clear that our greatest assets — the Newton sales force and the loyal team that supports them — would be best served with a Chapter 11 filing. Our goal is to work with the HALO team to retain as many of our valued employees as possible going forward.”

HALO CEO Marc Simon said his company has been reviewing Newton Manufacturing’s finances for “quite some time.” HALO attorneys filed a particular type of motion that will allow assets to be transferred within 30 days.

HALO Branded Solutions has been around for more than 60 years. It claims to have more than 900 account executives throughout the U.S. and a support staff of more than 300.

Newton Manufacturing was founded in 1909 by George Newton, but hasn’t made new products since a fire destroyed manufacturing facilities in 1943. The “Manufacturing” name was left intact for brand recognition.

The specialty advertising company has been employee-owned since 1988, and employees 59 people at the Newton facility. Those employees support a nationwide network of hundreds of independent contractors.

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com