Official - despite rumors, Bernie industry will remain

Ames True Temper makes ax handles

Business Today

BERNIE -- With the news of piston-maker Federal Mogul closing in nearby Malden, rumors have been circulating about the status of IXL/Ames True Temper in Bernie and Dexter. They are rumors that operations manager Rick Lavender is anxious to put to rest.

"Rumors can be self-fulfilling," Lavender said, explaining that once employees think they may lose their jobs, they tend to become less productive, thus putting the profitability of the company in jeopardy.

According to Lavender, Ames True Temper's parent company, U.S. Industries, has had some cash flow problems, so it put its "golden nugget" -- Ames True Temper -- up for sale.

"The people going around asking questions are looking at the cash book value of all True Temper's facilities," Lavender said. Ames True Temper has 30 facilities across the country. Lavender said the company would be "sold to somebody by the first of the year."

He said he looks at the situation as a good thing. It's his understanding, he said, that the buyer will be a financial investor. Nothing will change on the corporate level and it will be "business as usual for everybody." Because Ames True Temper will no longer be owned by a company with cash flow problems, Lavender said the move is a positive one.

"If it was bad, I wouldn't say anything," he said. "It's good for all of us here in Bernie and Dexter." Ames True Temper/IXL produces the most ax handles of any business in the industry, controlling 85 percent of the market, according to Lavender.