Watson Grinding & Manufacturing Co. and Watson Valve Services, Inc. Seek to Restructure
HOUSTON, February 6, 2020 – Watson Grinding & Manufacturing Co and Watson Valve Services, Inc. today filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court of the Southern District of Texas. Once approved by the Court, this filing will allow the companies to continue operation of their businesses and service to customers while they work through a plan of reorganization.
Watson Grinding & Manufacturing ceased operations after a propylene gas explosion on January 24th. Due to what is expected to be a long-term interruption of business operations, the company was forced to terminate the employment of approximately 80 workers this week.
Watson Valve, also had its business near the explosion site and would contract with Watson Grinding to machine products for customers. It continues to operate at approximately 20 percent of normal capacity by utilizing other suppliers.
“Our hearts go out to everyone who has been affected by this tragedy and we are convinced that the best way to ensure our organization can play a positive role in the long-term recovery of the area is by remaining a viable business,” said John Watson, son of the company’s founder and the CEO of Watson Grinding & Manufacturing Co. “We are a family business and through this reorganization, we intend to save the company and protect and restore the jobs for our dedicated and hardworking team.”
Watson is co-owner of the company with his brother-in-law, Robert White and nephew, Jason White.
How the accident happened and who may be responsible is still under investigation and cannot be determined at this early stage.
The Chapter 11 filing states that the company intends to marshal its assets and allow for an orderly claims process. As part of the reorganization, company leadership will explore a variety of strategic and structural initiatives to best position both Watson Grinding & Manufacturing and Watson Valve for long-term success in the future.
About Watson Grinding & Manufacturing
Established as a small specialty grinding shop in 1960, Watson Grinding & Manufacturing grew to include a full-scale machine shop and to offer specialty thermal spray coatings. It provides customers around the world with machining, grinding, lapping and thermal spray coatings. As a full-service manufacturer, in-house capabilities include full-service CNC machining, manual machining and precision grinding of large parts and exotic alloys.
About Watson Valve Services, Inc.
Founded in 2002, Watson Valve Services is a provider of severe service ball valves used by autoclave operations, mining and chemical facilities around the world.