Cartersville, Ga.—AHF Products has received approval from the U.S. Bankruptcy Court for the Northern District of Georgia to acquire Wellmade’s manufacturing facility here. The acquisition positions AHF as a fully integrated domestic manufacturer across all major hard surface flooring categories, including the fast-growing rigid core segment.
Under the terms of the deal, AHF Products will wholly own and operate the plant, bringing premium U.S.-based rigid core production capabilities under its roof. The facility will operate under AHF’s proven manufacturing systems, backed by more than 100 years of expertise in resilient and hardwood flooring.
“This is more than an asset purchase—it’s a strategic expansion,” said Brent Emore, CEO of AHF Products. “With rigid core representing approximately 80% of the residential resilient market, this facility completes our domestic manufacturing portfolio and strengthens our leadership as a U.S.-based hard surface flooring manufacturer.”
Cartersville boosts AHF’s production edge
Specifically, the Cartersville facility gives AHF a significant edge in production speed, quality control and supply chain reliability. The company plans to invest in the plant to bring it in line with AHF’s operational standards and manufacturing processes.
“This plant fills a critical gap in our portfolio,” Emore added. “It ensures we have domestic manufacturing across all key hard surface categories.”
Moreover, the acquisition further strengthens AHF’s ability to support customers with dependable supply and expanded product offerings. It also reinforces the company’s commitment to American manufacturing.
“This is a win for the industry and our customers,” said Jennifer Zimmerman, chief commercial officer at AHF Products. “As part of AHF, the facility will enhance value, increase supply availability and reinforce our commitment to American manufacturing. Now, with 10 facilities nationwide, as well as an engineered wood plant in Cambodia, this acquisition expands our footprint and strengthens our ability to deliver fast, reliable service backed by quality and innovation.”
AHF said it plans to continue operations for existing customers while expanding capabilities to meet growing market demand. “We’re proud to welcome this new factory and capabilities into the AHF family,” Emore stated.
Client to owner
The road to AHF Products purchasing Wellmade’s manufacturing facility was not your typical acquisition path. The root of Wellmade’s troubles actually came to light as a result of an FBI investigation looking into labor trafficking allegations (FCNews, March 31/April 7). On March 26, federal and state law enforcement, including U.S. Immigration and Customs Enforcement (ICE) and the FBI, raided Wellmade’s Cartersville plant as part of a multi-year labor trafficking investigation. Authorities arrested co-founder George Chen and his nephew, Jiayi “Jia” Chen, on state charges of trafficking persons for labor servitude. The company was accused of fraudulently recruiting dozens of immigrant workers from China and subjecting them to harsh working and living conditions. A subsequent civil lawsuit was filed against Wellmade alleging violations of the Trafficking Victims Protection Act and federal labor laws. The Cartersville plant reopened two days later under interim management.
The fallout from the raid triggered swift financial ramifications. On April 18, Wellmade’s primary lender, Northwest Bank (NWB), issued a notice of default, citing covenant breaches. NWB required Wellmade to engage a financial advisor, leading to the retention of Aurora Management Partners. By July 3, Aurora’s chief restructuring officer, David Baker, was awarded full control over the company.
Final foreclosure
On May 20, NWB exited the relationship by selling all of Wellmade’s debt to AHF IC, LLC, a major Wellmade customer. AHF IC entered into a forbearance agreement with the company, which expired on July 4, 2025. After the forbearance period lapsed without a resolution, AHF IC initiated foreclosure proceedings, scheduling a UCC sale of Wellmade’s assets for July 22, to satisfy the outstanding $18 million in secured debt.
The sale was postponed several times as AHF IC—acting as both creditor and prospective buyer—engaged in negotiations for a “stalking-horse” bid to acquire the business. (A stalking horse bidder is an initial, pre-negotiated buyer in a bankruptcy auction who sets a minimum price and terms for the sale of assets. This strategy is used by companies in bankruptcy to ensure a floor price for their assets, incentivize other bidders to participate and streamline the sale process. In return for making this initial, costly bid, the stalking horse bidder often receives compensation, like a break-up fee, if a higher bid wins the auction.)
With the final foreclosure sale looming on August 5 and no deal finalized, Wellmade filed for Chapter 11 protection to stay the sale and preserve the value of the business as a going concern. To fund operations through the bankruptcy process, the debtors secured a $4 million DIP financing facility from SummitBridge National Investments VIII LLC. Investment bank Hilco Corporate Finance initiated the court-supervised sale process before filing, and the DIP financing immediately provided liquidity to maintain operations.
The debtors conducted a sale of substantially all assets under Section 363 of the Bankruptcy Code, with the goal of maximizing value by selling the business as a going concern.
