Sigg Switzerland USA Inc. would sell all its assets to its Canadian sister company under a court-supervised auction aimed at raising money to pay back some non-secured creditor claims, according to documents the company filed as part of its Chapter 11 bankruptcy.
The company said its lost millions of dollars in 2009 and 2010 as customers exchanged more than 300,000 of its aluminum bottles over concerns that they contained small traces of the chemical BPA.
Sigg was among the aluminum and stainless steel bottle makers that benefited in 2008 when outdoor and other retailers began pulling their polycarbonate water bottles from shelves after learning Canada and Europe were considering banning baby bottles and other juvenile products made from the plastic because of possible health risks of the chemical BPA. But under pressure from the media and consumer groups, Sigg eventually conceded that some of its bottles liners included trace elements of BPA. The company exchanged more than 300,000 bottles for free but was still hit with a series of lawsuits alleging the company misrepresented its health safety claims and violated consumer proteciton laws. The company has vigorously defended against efforts to consolidate these lawsuits under a class action.
Sigg Switzerland USA lost millions of dollars a year in 2009 and 2010 as sales dropped and is currently unable to raise money needed to recapitalize, according its petition.
Sigg Switerland USA now advertises on its web site that its bottles are use BPA- and phthalate-free ingredients.
