After decades of establishing a strong foothold in South Florida, Compac USA Inc., a well-known company in architectural stone surface construction, has declared bankruptcy. The petition, made on December 21, tells the story of legal battles, financial strain, and the company’s determination to carry forward.
At its core, this Miami-based company, known as Compacstone USA Inc., has been a reliable player in the construction market for more than 20 years. However, even experienced organizations have problems, and for Compac USA, these came in the shape of lawsuits. The corporation is currently involved in 53 legal claims in California, all of which allege that silica dust exposure caused silicosis. These cases, which involve 90 plaintiffs, allege carelessness and failure to warn—a heavy burden for any corporation to bear.
According to its bankruptcy petition, Compac USA is dealing with debts and assets worth up to $10 million. President Francisco A. Sanchis-Brines, who filed the petition in Miami’s United States Bankruptcy Court, stated that the majority of the company’s debt is unsecured, with the exception of a leased Toyota forklift.
Despite these obstacles, the data show a corporation that is still standing strong. As of November, Compac USA had $1.9 million in receivables and $2.2 million in inventories. In 2023, its revenue surpassed $20 million, with a sales profit of approximately $9 million.
The company has showrooms in Miami and New York City, serving clients throughout the United States with luxury products imported from Europe. It also has leased premises in Florida, New Jersey, and New York, where monthly rentals range from $3,600 to a startling $20,832.
While Compac USA rejects the claims in the silica dust lawsuits, citing a lack of causality and other defenses, the cost of litigation has been prohibitively expensive. These litigation, combined with continued operating expenses, forced the company into bankruptcy.
It is worth noting that Compac USA is a subsidiary of Spain-based Compac Corporate S.L., a firm founded in 1975. Over the years, the Miami branch has played an important role in South Florida’s construction industry, contributing to projects such as the Sheraton Miami Airport Hotel and Dolphin Mall.
Filing for Chapter 11 does not imply the end of operations; rather, it represents a strategic reset. The court has permitted Compac USA to continue operations while it restructures its finances. According to Sanchis-Brines, the company is committed to serving its clients and resolving legal difficulties while continuing to operate.
For a corporation that has seen highs of multimillion-dollar revenues and lows of increasing lawsuits, this time is both a problem and an opportunity. With its rich history and passion to the art, Compac USA is determined to weather the storm and emerge stronger.
Only time will tell how this adventure plays out, but one thing is certain: Compac USA is not ready to give up its position in the construction sector just yet.