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Cadet Manufacturing Co., a Vancouver-based manufacturer of electric heaters, filed Jan. 14 for protection under Chapter 11 of the United States Bankruptcy Code.
The filing was precipitated by costs related to the recall of a discontinued product by the Consumer Products Safety Commission (CPSC), according to Hutch Johnson, company president. The recall of product manufactured between 1985 and 1992 was initiated by the CPSC due to 44 complaints of sparks, smoke and/or fire caused by the failure of a limit switch made by an outside supplier, says Johnson.
Cadet Manufacturing could not pay the labor to replace limit switches for all consumers at an estimated cost of $10 million. Instead, replacement switches were sent to affected consumers with instructions for installation. To date, more than 870,000 replacement switches have been delivered to consumers, according to the company.