TTI Now Owns Oreck

bagintheback · Jul 8, 2013

Not too thrilled about this. I hope they have some decency and keep the uprights made in America.

The founding family behind Oreck Corp. has lost its bid to buy the company out of bankruptcy protection.
In a statement released tonight, company officials announced that Royal Appliance Manufacturing Company – which already owns vacuum giant Hoover – submitted the winning bid during Monday’s bankruptcy auction.
“(Royal) was the winning bidder of the auction of the company following its Chapter 11 bankruptcy filing,” according to a statement. “Royal's intention, subject to court approval at a hearing scheduled July 16, is to close the transaction (on) July 24."
Financial details of the winning bid were not released. The Oreck family had originally submitted a “stalking horse” bid of $23 million at the beginning of the bankruptcy process.
The family’s effort, led by former CEO Thomas Oreck, was aimed at keeping the company’s manufacturing jobs in the United States. The company has more than 200 employees at a manufacturing facility in Cookeville, Tenn., along with several dozen corporate employees in Nashville. The company also employs several hundred workers at Oreck retail locations across the country.
There was no immediate work on what the deal would mean for Oreck employees.
Oreck, a vacuum cleaner and home-care products company, filed a Chapter 11 reorganization petition on May 6.
The company was founded 50 years ago by David Oreck, who became a household name by appearing on the company’s infomercials that were a staple of television advertising for years.
<p class=" PIN_1373341042785_hazClick" style="line-height: 24px; font-size: 16px; margin-bottom: 18px; padding-left: 160px; color: #2c2c2c; font-family: Helvetica, Arial, sans-serif; font-weight: normal;">The company had previously been based in New Orleans, La., but moved north following Hurricane Katrina.

http://www.tennessean.com/article/20130708/BUSINESS/307080070

nycwriter · Jul 9, 2013

Don't hold your breath ...

Companies aren't in business to be decent.

And Chinese companies aren't in business to provide jobs for Americans.

Those jobs don't have a snowball's chance in hell.

tylerawells · Jul 9, 2013

Sadly, I agree with you Matt. I doubt the company will be close to anything it is today in a years time. I don't even want to think about the kind of things they're going to stick the Oreck name on.

jmurray01 · Jul 9, 2013

This is a sad day for Oreck.

I have never owned one but have heard many good things about them and am disappointed that yet another company will be ruined by TTI. Just look at Hoover.

tolivac · Jul 9, 2013

Another sad day for vacuum cleaners-TTI will mean the kiss of death for Oreck.There goes another US vacuum maker.Guess it will all go to China.Now older US made Oreck vacuums will be prized!

sebo_fan · Jul 9, 2013

Never say never - I mean, though the vacuums may be made in China, perhaps TTI will allow Oreck to keep design in the U.S - that's effectively how the Vax Mach Air came about since it was designed in the UK before being made in China. Dependent on what factory Oreck has, TTI may well decide to keep a manufacturing base alive. It really depends on what they will do with the company.

However I have just found a late report from MSN suggesting that the downfall of Oreck were down to a number of things:

1) "...The direct sales model wasn't working. Where do you go to buy a vacuum? Wal-Mart (WMT +0.69%) or Target (TGT +0.80%), perhaps? Maybe Amazon.com (AMZN -0.20%)? Not enough people thought about going to an Oreck store or calling the company directly..."

2) "...The company didn't jump on bagless technology. Shoppers have been hot for bagless vacuums for years, especially after Britiain's James Dyson unveiled his popular line in the U.S. in 2002. It took more than a decade for Oreck to embrace bagless technology..."

3) "...It clung to infomercials for too long. Oreck needed to modernize its advertising and marketing strategies, but it inexplicably stuck with late-night infomercials for a long time..."

4) "...It looked like your grandma's vacuum. Oreck's designs were boxy and out of date. Only recently has the company unveiled sleeker, more modern models...."

I don't think I have read such a poorly misled report from MSN before though - citing that brand's downfall on the way a model looks is pathetic - I mean, Kirby uprights are hardly modern looking, yet they are built to last, same with SEBO's X uprights/ Windsor, same with others. None of those brands offer bagless either, which isn't a big downfall for a company who produce vacuums. The advertising maybe has a clue as to why market saturation for Oreck products may be low, but I don't think that's a big issue, either- I mean, some other brands don't have huge advertising either but go on reliability, performance and efficiency with other means of promotion.

I think it would be at loss not to have Oreck uprights on the market; clearly the launch of the bagless uprights earlier this year was probably down to market pressure and to show that Oreck could produce a bagless model. However, their core market has always been bagged vacuums - it would be sad to see another bagged brand fall by the wayside, regardless of whether I personally like them or not - having had an Oreck, I know of the pros and cons but they have to be admired for the fact that they use bags to capture the dust, regardless of the problems I had with mine.

http://money.msn.com/now/post.aspx?post=b68e2187-c20e-4dad-b3c7-930d61f69ff3

jmurray01 · Jul 9, 2013

I can't believe my eyes - their downfall was because of the design and the fact they didn't immediately run to the drawing board to produce a bagless model?

What utter rubbish.

If that were true, then why are Kirby and Numatic still successful brands? They look far from modern (the former moreso than the latter) and neither have, or have ever had a bagless model.

I don't know who wrote that article but they should be sacked.

gsheen · Jul 9, 2013

Personally never cared to much for Oreck, You can't compare oreck to Kirby or Numatic, Numatic sells because of cleaning company's you see it at work and so you want one at home. The best thing Numatic ever did was the face. Its there signature.

Kirby is a massive heavy duty vacuum, In the time we had Orecks in SA all they did was break and shatter. I am not a fan of Kirby either but lets be honest here its a vacuum cleaner that will last years.

I think the article has some good points, They should have redesigned there look, even if they stuck wit bags they needed on board tools and some convenience to make it interesting. Just because we as collectors like it does not make it a viable selling vacuum. If it can't sell then its dead in the water.

Case in point I love upright vacuums, and hate cylinder vacuums But if I only sold upright vacuums I would go out of business. Consumers speak and they did in the case of Oreck now we will have to see what happens to them.

Does anyone know what the tie between oreck and Ivac of Netherlands is, Ivac produces the fast brand of Vacuums and I see on their website they have something to do with Oreck too

gottahaveahoove · Jul 9, 2013

WEll,

Now, just sit back and watch.
This could go the exact was HOOVER did. They're still talking about it in North canton.
Now, we might see Oreck Wind tunnels. yikes.
Designers.... sharpen your pencils.

sebo_fan · Jul 9, 2013

Well you know already that Oreck also sell SEBO commercial uprights under their name - so IVAC probably has the same deal.

turbo500 · Jul 9, 2013

yet another company will be ruined by TTI. Just look at Hoo

Slightly off topic, but TTI can hardly be held responsible for the downfall of Hoover. Hoover shot themselves in the foot with free flights, which forced them to sell as they were going bankrupt. The Hoover Cleaner, as we all know and love it, ceased to exist as soon as Candy took over.

It's also important to note that Hoover Europe cleaners are not made by TTI, they are made by Candy. Hence Hoover US machines cannot be branded Hoover in the UK, they are instead branded "Vax".

turbo500 · Jul 9, 2013

Now, back on topic...

I am by no means an Oreck fan and always viewed them as an overpriced, glorified carpet sweeper. I've also found David Oreck's fame as the "inventor" to be a big fat lie, as he bought an old design from Whirlpool (previously sold as the MacDonald Electric in the UK) - he did not invent the cleaner at all.

However, this is a blow to the US economy and another brand swallowed up by a Chinese giant and for that, I am very sorry to see them go. They deffinitley had a market, both commercial and domestic, and are certainly iconic in design. They were also very reliable and well made, despite their questionable performance. So to see a reputable, reliable brand go to TTI is quite sad indeed!

ncovert · Jul 9, 2013

Yippee...

Another Chinese company sucks up an American company (no pun intended.)

Now TTI owns Royal, Dirt Devil, Hoover, and Oreck.

I wonder what company is next? Anything but Kirby!!

sebo_fan · Jul 9, 2013

Not Quite True regarding TTI & Candy

Actually Chris, that's not quite accurate regarding TTI & Candy.

There have been a few instances where Hoover Europe have brought over Hoover/Dirt Devil U.S models in recent years. Lets not forget TTI took control of Hoover U.S in 2006. The Freejet stick vacuum was originally designed and produced by Dirt Devil which you'll be aware was thereafter part of the TTI deal. Thus, Hoover Europe marketed the Freejet and other selected models from the Dirt Devil empire before and after TTI took over both Dirt Devil U.S and Hoover U.S,.

Hoover Europe still import the Freejet and the Freejet Plus models today.

Hoover U.S did sell a Hoover Europe canister vacuum in the form of the Morphy Richards based "Studio" bagged cylinder vacuum, a model I believe is still showing on the U.S website, the S1361. I had a red Studio model for a time and found it to be a highly efficient and well made budget bagged cylinder vac.

http://hoover.com/products/details/s1361---/portable-canister/

gottahaveahoove · Jul 9, 2013

Can you imagine how things would be now if

possibly that airline mess never happened? HOOVER would still have been a worldwide empire. To think that it was pulled to its knees like that was awful. Stay tuned....

turbo500 · Jul 9, 2013

Hi Ryan,

Ah, thanks for the input there, much appreciated!

Those Studio cleaners have been branded allsorts - I have a Goblin Ace 1300 which is the same cleaner. There was another Hoover variant of it too, but I can't recall what it was called. It was pale yellow and I think it just said "1300" on it. I know it was branded as Goblin Ace, Morphy Richards Jazz & Compact, JMB, Hoover, Vax Mojo, and Dirt Devil. Not bad cleaners though, especially considering what you'd get for the price these days.

gottahaveahoove · Jul 9, 2013

It was posted in a newspaper in Feb of 2013 that

TTI laid off 150 workers in the El Paso Plant, reducing the workforce there to nearly half. But, TTI reports their biggest profit year.

I was told a while back, that the Convertible was coming back. I was also told the lots of jobs were coming back.... to El Paso. It seems that there has been a shift. hmmmmmmmmm

jmurray01 · Jul 9, 2013

I know what you mean John - things could have been so different had that not happened and Hoover had still been owned by the Hoover family.

But unfortunately it did happen and we have to live with the consequenses.

I do think though that at some point Hoover would have been sold to a bigger corporation, as when you think about it - if "the Hoovers" were really interested in keeping the company within the family, they wouldn't have sold it in the first place (even if it meant filing Chapter 11 and starting again), but they did, so I think it would have gone at some point.

kirbyclassiciii · Jul 9, 2013

Well, will TTI bring back any jobs to El Paso this year?

~Ben

TTI Now Owns Oreck

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