Sunbeam Scraps Plan to Sell 2 Businesses, Close 4 Plants

Sunbeam Corp. abandoned the 3-month-old restructuring planned by fired Chairman Al Dunlap, reversed a decision to close four factories and plans to sell two businesses.

While closing four other plants as planned, the maker of small household appliances said it will keep open plants in Maize, Kan.; Pocola, Okla.; Aurora, Ill.; and Acuna, Mexico.

Delray Beach, Fla.-based Sunbeam also said it won’t sell the Eastpak backpack division and the Powermate compressor businesses acquired in its Coleman Co. acquisition. Sunbeam Chief Executive Jerry Levin, who replaced Dunlap in June, said the reversal will ensure strong service to retailers.

“The plants are being kept open to ensure a high level of quality and customer service, as well as a consistency of supply,” he said. The retained firms are “excellent businesses,” he said.

Levin, 54, ran camping-products maker Coleman Co. until billionaire Ronald Perelman sold his 82% stake to Sunbeam in March, making Perelman Sunbeam’s second-largest shareholder. Levin previously headed Revlon Inc.

Dunlap, who gained the nickname “Chainsaw Al” for his severe cuts in employment, announced plans on May 11 to lay off 6,400 workers, 40% of Sunbeam’s work force. He was fired a month later, after Sunbeam failed to produce a profit for the previous six months.

Sunbeam shares rose 25 cents to close at $8.81 on the New York Stock Exchange.