Atlanta-based Dorsey Trailers has suspended operations at its three manufacturing plants in order to review its financial options, which could include filing for bankruptcy.
"Filing a petition for bankruptcy is a distinct possibility," said CEO John L. Pugh in a company issued press release. "Some limited production will take place in order to finish trailers that are near completion, but substantially all production is suspended as we evaluate our options."
Dorsey plans to shut down plants in Elba, Ala., Cartersville, Ga., and Dillon, S.C.
In November, the company hired a turnaround firm to help with restructuring. Dorsey later announced that it would
slash about half of its management and salaried staff because of a drop in demand for its trailers.
Dorsey has been in business for 80 years, with its roots in a small machinery shop founded in Elba, Ala., in 1911 by brothers Pete and Henry Dorsey. Today the company manufactures flatbeds and container chassis as well as dump trailers and bodies.
Phillips Industries restructured its business into five distinct business units to help the company focus its resources on specific markets and also announced two senior leadership promotions.