09.11.06
Foss Manufacturing
Hampton, NH
www.fossmfg.com
$100 million
It’s a been a troubling year for Foss Manufacturing. The Hampton, NH-based needlepunch nonwovens manufacturer entered Chapter 11 bankruptcy in October 2005 after accusations of fraud forced the resignation of longtime CEO Stephen Foss. In the ensuing months, stories surfaced accusing Mr. Foss of using corporate funds to fund personal expenses and hiding the company’s financial troubles from creditors. Amidst these allegations, the troubled company was purchased by Alinian Capital Group, a Florida-based investment banking advisory group for $39 million, allowing Foss to pay off some of its debt, in May. Since then, Foss has been able to return to profitability.
Alinian named A.J. Nassar Foss’ new CEO who has addressed three major priorities: intense review of costs and controls; focus on employee initiatives and morale and repair of customer, and former customer, relationships
“Foss Manufacturing had not been performing to its potential and we took steps to be more productive and profitable. Those steps have resulted in the retention of almost 400 jobs and 200 new position offerings here at Foss. In addition there has been a huge collateral effect with direct and indirect suppliers in Hampton and throughout the Northeast,” said Mr. Nassar.
Among the allegations against Mr. Foss are that he and other executives illegally distributed $900,000 worth of illegal dividends, spent $562,000 to pay off personal charges on credit cards and used $300,000 of company living expenses on his personal residence and other family members’ homes. Additionally, Mr. Foss reportedly manipulated computer data to hide his company’s financial problems from creditors.
With its needlepunch technology, Foss serves a number of markets including automotives, retail crafts, auto aftermarket, filtration, car wash and home and garden. Additionally, the company has been a pioneer in performance fibers with its Fossshield technology which includes a wide range of antimicrobial fibers and fabrics produced with all natural silver, one of the oldest antimicrobial agents proven effective against more than 650 strains of bacteria. Foss’ most advanced antimicrobial technology Fosshield CS used a combination of copper, silver and zinc as the active ingredients and has proven to be extremely powerful against a broad spectrum of bacterial, mold, fungus and mildew. Beyond Fosshield, Foss’ PCT fiber, based on modified polyester, has proven to be exceptionally effective for filtration at high temperatures. It is also resistant to hydrolysis degradation, which significantly increases the lifecycle of a filter media. This technology is allowing Foss to provide filtration solutions for drinking water, the healthcare industry, food processing and aviation fuel.
Hampton, NH
www.fossmfg.com
$100 million
Key Personnel
A.J. Nassar, CEOPlants
Hampton, NHISO Status
All businesses are both QS 9000 and ISO 9001 certified and are close to ISO 14,000 (environmental registration based on efforts to reduce emissions, solid waste and waste water)Processes
Polyester, polypropylene and specialty fiber spinning; needlepunch, extrusion; post finishing, die cutting, embossingBrand Names
Foss; Fosshield Antimicrobial Technologies; SoleMates: Enviromat; Geomat; FossFibre; FossFelt, Stratos; Whispertex; Masterwear; FossForm; Kunin Felt; Rainbow Felt; Confetti Felt: Kreative Kanvas; Fosscloth; Softherm; Fossdust; Fossflow; Ozite; Elevations: Showtime; Safari Felt; Wonderflex; Glitterfelt; Fluorescent Felt; Fosshape; Fisipe Acrylic Fibers; TopGuard; RAY-sist (endurance fibers); Lane House Collection; SignatureMajor Markets
Specialty synthetic fiber (solution died PET, bicomponent fibers, antimicrobial fibers, fire-retardant fibers, acrylic fiber); automotives (headliners, package trays, floor carpets, trim fabrics); decorative (wall coverings, marine, RV, speaker coverings), retail (craft, auto-aftermarket); technical (vinyl substrate, filtration, healthcare, car wash, home and garden).It’s a been a troubling year for Foss Manufacturing. The Hampton, NH-based needlepunch nonwovens manufacturer entered Chapter 11 bankruptcy in October 2005 after accusations of fraud forced the resignation of longtime CEO Stephen Foss. In the ensuing months, stories surfaced accusing Mr. Foss of using corporate funds to fund personal expenses and hiding the company’s financial troubles from creditors. Amidst these allegations, the troubled company was purchased by Alinian Capital Group, a Florida-based investment banking advisory group for $39 million, allowing Foss to pay off some of its debt, in May. Since then, Foss has been able to return to profitability.
Alinian named A.J. Nassar Foss’ new CEO who has addressed three major priorities: intense review of costs and controls; focus on employee initiatives and morale and repair of customer, and former customer, relationships
“Foss Manufacturing had not been performing to its potential and we took steps to be more productive and profitable. Those steps have resulted in the retention of almost 400 jobs and 200 new position offerings here at Foss. In addition there has been a huge collateral effect with direct and indirect suppliers in Hampton and throughout the Northeast,” said Mr. Nassar.
Among the allegations against Mr. Foss are that he and other executives illegally distributed $900,000 worth of illegal dividends, spent $562,000 to pay off personal charges on credit cards and used $300,000 of company living expenses on his personal residence and other family members’ homes. Additionally, Mr. Foss reportedly manipulated computer data to hide his company’s financial problems from creditors.
With its needlepunch technology, Foss serves a number of markets including automotives, retail crafts, auto aftermarket, filtration, car wash and home and garden. Additionally, the company has been a pioneer in performance fibers with its Fossshield technology which includes a wide range of antimicrobial fibers and fabrics produced with all natural silver, one of the oldest antimicrobial agents proven effective against more than 650 strains of bacteria. Foss’ most advanced antimicrobial technology Fosshield CS used a combination of copper, silver and zinc as the active ingredients and has proven to be extremely powerful against a broad spectrum of bacterial, mold, fungus and mildew. Beyond Fosshield, Foss’ PCT fiber, based on modified polyester, has proven to be exceptionally effective for filtration at high temperatures. It is also resistant to hydrolysis degradation, which significantly increases the lifecycle of a filter media. This technology is allowing Foss to provide filtration solutions for drinking water, the healthcare industry, food processing and aviation fuel.
