Latex factory property in Shelton damaged by fire was to be auctioned off
A legal notice to auction the Latex Foam International property at 510 River Road in Shelton was printed on the same day the factory caught on fire.
The “Notice of Public Auction” legal notice was printed on Thursday, June 26 in the Connecticut Post classified section, indicating that Latex Masters Inc. was planning to auction the property “pursuant to its rights under that certain amended and restated loan and security agreement dated April 17, 2006 ... between Latex Foam International LLC and Latex Masters Inc.”
Latex Foam International — the owner of the business and property — recently filed for bankruptcy, and the legal notice involving the auction likely involves a major creditor positioning itself to try to get paid the money it is owed by the company.
Latex Masters Inc. is described in the notice as “the successor-in-interest to Wells Fargo Bank,” which means it probably purchased the debt from the well-known national bank.
Fire began during overnight shift
Early on the morning of June 26, a fire began in the rear basement of the Latex Foam International factory. It appears the fire started in a large, industrial drying machine used in the mattress production process. The investigation into the cause is ongoing.
Some overnight-shift employees were inside the building at the time, but all escaped safely. The fire led to a massive firefighting response by all four Shelton volunteer fire companies, assisted by those from surrounding towns.
The fire was essentially contained to the inside of the building, but did spread through the vent system. It occurred in the very rear of the main building and the damage is not visible from the outside. Large amounts of water were used to put the fire out, flooding the basement.
‘Shall conduct a public sale’
In the legal notice, it is stated that Latex Masters Inc. “shall conduct a public sale of all assets of Latex Foam International and the guarantors pledged as collateral ... for the obligations as defined in the loan agreement.”
“The property will be offered for sale as an entirety,” according to the legal notice.
The dates for the auction and for final payment by anyone whose bid was accepted are left blank in the legal notice.
“Latex Masters Inc. reserves the right to cancel, postpone and/or re-notice the time and event of the sale,” states the notice.