Auto parts manufacturer Collins & Aikman plans to file for bankruptcy protection today or Wednesday, barring a last minute bailout by Ford Motor Co. or General Motors Corp. The Troy, Mich.-based company has hired the prominent law firm of Kirkland & Ellis LLP to file for Chapter 11 bankruptcy protection, according to a local lawyer representing four of C&A's suppliers and other auto officials familiar with the company.
With 23,000 employees, Collins & Aikman is one of Michigan's largest suppliers of auto parts to both Ford and Chrysler, making parts such as instruments panels and carpets on nine of every 10 cars or trucks made in North America. The company is the third auto parts supplier to file for Chapter 11 this year, as a result of rising prices for raw materials and plunging sales for Detroit's largest auto manufacturers.
This article appeared in its entirety in the May 17, 2005 edition of the Detroit Free Press.