Industries Acquires Assets from Echo Windows
MGM Industries Inc. in Hendersonville, Tenn., has entered into
an agreement with the management of Echo Windows LLC in Red Oak,
Iowa, to purchase inventories and equipment necessary to build the
Sienna replacement window product line, according to Joe Gaskins,
MGM's vice president of sales.
Echo Windows closed its doors abruptly earlier this week (CLICK
HERE for related story).
"They [Republic management] sold the Sienna line out of the
building in hopes of getting our customer base," Dwayne Adams,
plant manager, told USGNN.com.
He added that equipment is currently being moved out of the facility.
"The Sienna line was the primary line so that leaves us with
a building and one composite window line so that puts us [Echo]
out of business."
However, Gaskins told USGNN.com that the company had been
working for months with window extruder VEKA to make the DH31 product,
which is the same that Echo/TRACO was making. (Richard Gillman,
former owner of Republic Windows in Chicago formed Echo Windows
in December. Echo purchased the residential business from TRACO.
HERE for related story) But when the company learned that Echo
Windows was struggling, MGM made an offer to purchase the Sienna
"This was a way to expedite our way to get into that window
system," says Gaskins.
When asked if MGM had considered purchasing the Iowa facility,
Gaskins says this was not a feasible alternative. "It makes
more sense to manufacture and ship everything out of one location
for an expenditure point of view," he says.
"The real travesty here is the loss of employment in Iowa,"
Gaskins also admits that MGM took into consideration the fact that
it was buying the assets from a company that has been shrouded in
"We've been in business for 42 years and it takes that long
to build a solid reputation and only seconds to destroy it,"
says Gaskins. "The purchase of Echo Windows was an arms-length
transaction. That's why it was important for us to buy the assets
and not bring that management team into our company."
Adams says, in his opinion, the former Republic customers will
move their business to MGM but the customers that existed when the
facility was run by TRACO may not.
"I don't think it will work out for them [MGM]," he adds.
"I think the original TRACO customers will find new window
Gaskins says that this is a relationship-driven business. "It's
up to us to prove ourselves to these customers," he says. "We
need to call customers and clarify what we purchased, etc. There
will be confusion for weeks."
MGM Industries will assume the trade name Sienna and has agreed
to assume the warranty issues of Echo Windows for these lines, for
four years beginning February 27, 2009, and for fours years prior
to this date. This excludes Echo's P2 product, which is not included
in the purchase.
"We understand the importance of upholding existing warranties
and we want to reassure customers that we will honor those warranties
and provide them with the best customer service we can provide,"
The equipment will be moved to MGM's 400,000-square-foot Hendersonville,
Tenn., plant this week, where production will begin immediately.
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