A deal to sell the Tennessee cooking complex has been dashed

YSN Staff

The planned sale of Electrolux’s recently shuttered cooking appliance plant in Memphis, Tenn., has fallen through.

According to the manufacturer, the $82.5 million, all-cash deal was expected to close in the fourth quarter, but the unnamed buyer defaulted on its obligations and the agreement has since been terminated.

The Swedish appliance giant said it will now seek an alternative buyer for the sprawling 750,000-square-foot facility, which opened in November 2013 after shifting production from Canada.

The plant was originally built at a cost of $266 million, offset by some $137 million in state and local incentives. It produced ranges, wall ovens and other cooking products until its closure in June 2022.

Electrolux initially planned to close the factory in 2020 amid the decline of Sears’ appliance business and higher steel tariffs. But the vendor continued operations through the pandemic when consumer demand and supply-chain constraints kept appliances in short supply.

Cooking production has since been consolidated into Electrolux’s sprawling Springfield, Tenn., facility near Nashville, which has been expanded and updated with $250 million in capital improvements.

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