Orcon Corp. Closing Carpet Seaming, Tools Business

Union City, CA, March 23, 2009—Carpet seaming and tools supplier Orcon Corp. is closing that part of its business.

Owner  Hollis Bascom, who founded what became the Floor Covering Installation Systems Division in 1970, confirmed that Orcon will exit the business in the next few months. The company’s profitable aerospace division, founded in 1962, which supplies insulation for airliners around the world, will continue.

“When we studied what was happening, we decided there’s no point in losing money,” Bascom told FloorDaily.net. His firm is the biggest in the industry.

Bascom said he doesn’t think the economy is going to turn around anytime soon, which was one factor in the decision to close the seaming supplies business. There has also been significant downward pressure on pricing, which Bascom said he resisted.

“Everybody (in the industry) has the same problem,” Bascom said. He said he’s enthusiastic about the aerospace business, partly because it is supported by the government.

“We’ve got some great opportunities to make good money,” Bascom said.

Bascom said he hasn’t decided how to wind down the business. He said he has a valuable brand name and he thinks he should be able to take advantage of it.