Harper purchase agreement filed in court request

Fairfield?s Harper Brush Works Inc. filed an ?emergency motion for order approving auction and bid procedures? Thursday with the U.S. Bankruptcy Court in the Southern District of Iowa.

The request to the court came on the heels of the 112-year-old Fairfield manufacturer entering into an asset purchase agreement with Q.E.P. Co. Inc. of Boca Raton, Fla., earlier Thursday. Q.E.P. agreed to pay $2.2 million ?plus the amount of assumed obligations? for the sale assets.

Harper Brush Works filed for Chapter 11 bankruptcy organization on May 29. At the end of July, a U.S. bankruptcy court judge gave Harper 120 days to continue operations and attempt to find a buyer.

Pending court approval, the sale agreement sets in motion auction and bid procedures that would provide for the submission of competing bids, an auction and final sale hearing within 30 days of the motion?s Thursday filing date.

Q.E.P. and other interested buyers for Harper?s assets must submit bids at least $50,000 higher than Q.E.P.?s initial accepted purchase price, according to language in the bid procedure section of the motion filed Thursday.

Bids will be received for the sale assets in bulk, but could be separated into real estate and non-real estate assets at the discretion of the seller and lenders. Iowa State Bank and Trust of Fairfield and UMB Bank are ?senior secured creditors? and have first-priority liens ?on substantially all of the assets,? according to the court document.

Q.E.P is a 33-year-old company and manufactures, markets and distributes a ?comprehensive line of hardwood flooring, flooring installation tools, adhesives and flooring related products? targeted for the professional installer and do-it-yourselfers.

Fairfield Economic Development Association executive director Tracy Vance has said the goal of his organization is to keep as many of the 60-plus Harper jobs in Fairfield as possible.

Q.E.P. does not have business interests similar to Harper?s product line and has a history of maintaining branch manufacturing sites.

?I would anticipate them moving central office functions to Florida if they become the successful buyer,? said Vance.

Harper now sells a variety of products for the home, commercial and industrial settings including brushes, push brooms, buckets/dust pans, automotive cleaning tools, long-handled cleaning tools, mops, housewares, microfiber dusting tools and food service products.