EECO Sells Off Its Maxi-Switch Division
EECO Inc., the computer parts maker that filed for bankruptcy protection in May, said Tuesday it has sold the assets of its Maxi-Switch Keyboard Division to a Taiwanese electronics company.
EECO said in a statement it sold the Tucson-based division to Silitek, exclusive of any liabilities. Terms of the deal were not disclosed.
Silitek will retain EECO’s 100 employees in Tucson, where Taipei-based Silitek will establish its U.S. headquarters.
David Lin, president and chief executive officer of Silitek, said in a statement that the acquisition will advance the company’s goal of becoming a worldwide supplier of computer input devices.
In addition, EECO sold its keyboard plant in Caborca, Mexico, for an undisclosed sum to an investor group led by the plant’s former management team.
EECO also expects to sell its hotel computer systems business in Santa Ana in the coming months. The company retains its keyboard and switch manufacturing business in Scotland, and a keypad manufacturing plant in Phoenix.
George B. DeHuff III, president and chief executive of EECO, said the company would use the proceeds of the sales to pay debt.
After defaulting on a $10-million line of credit to Sanwa Bank in Los Angeles, EECO filed for bankruptcy protection on May 2. Before the filing, EECO officials said the company suffered losses because of heavy competition from the Far East as well as delays in its attempt to sell the Maxi-Switch division.
In 1989, EECO lost $10.3 million on revenue of $63 million.