A Niles-based diesel engine service company appears to be the latest casualty of the COVID driven disruption of normal business activity. Atlas Heavy Engine Co., doing business as ‘Worldwide Diesel’ is seeking bankruptcy protection in Federal Court in Grand Rapids.
According to official documents, Atlas/Worldwide Diesel has liabilities of over $ 4.2 Million dollars, and assets of only $1.1 million. The major creditor is Huntington Bank, owed $ 3,390,000. A former owner of Worldwide Diesel, Quality Truck Parts, is owed $423,000 and American Express is looking for $462,000.
Atlas/Worldwide Diesel said in court filings that it was hit with mounting warranty claims on products sold during the Quality Trick Parts ownership, shortly after it acquired the business in 2021. The situation was exacerbated, they claim, by “multiple supply chain disruptions” that have continued to plague the business.
Atlas principal Richard Campbell told the court he cut costs, including significant staff reductions, and hopes to resurrect the business going forward under Chapter 5 and Chapter 11 bankruptcy processes. Court documents say they have nine employees.
Atlas Heavy Engine/Worldwide Diesel operates from a 45,000 square foot warehouse facility located at 1515 N. Old US 31 in Niles.
