Rayovac Parent Spectrum Brands Files for Chapter 11 Bankruptcy Protection

Spectrum Brands, parent of hearing-aid battery maker Rayovac as well as other well-known consumer product brands including Remington electric razors, filed for Chapter 11 bankruptcy protection after failing to make a scheduled debt payment. Spectrum, with $2.7 billion in annual revenue, is carrying a debt load of $2.6 billion. In a series of statements, Spectrum said all its brands including Rayovac will continue with business as usual, and that it will continue to support its existing product lines as it works through the bankruptcy process.

“Our businesses have attractive growth prospects that have been encumbered by the level of debt the parent company is carrying,” said Kent Hussey, Chief Executive Officer of Spectrum Brands. “We do not believe there is any current need – and we have no current plans – to make any significant operating changes to our three business units, which have been profitable and have generated positive cash flow, and are meaningful competitors in their respective industries.” However, current shareholders of Spectrum Brands stand to lose much if not all their investment as settlements are made with creditors.