Weeks after rebranding, Chicago Rivet & Machine Co. says it isstruggling to stay open.
CEO Greg Rizzo and other management for the 106-year-old fastener manufacturer reported that recurring operating losses, negative cash flows, declining revenues and reduced liquidity raise “substantial doubt” about the company’s ability to continue operating within a year, even with planned asset sales and fresh financing, according to an August 6 Securities and Exchange Commission filing.
During the first half of 2026, results deteriorated from net income of $6 million in the first half of 2025 to a significant loss in 2026, with year‑to‑date operating losses of $1.4 million and sharply lower gross profit.
Chicago Rivet reported first-half negative operating cash flow of $1.76 million as the business consumed cash from operations, reducing cash and equivalents to $770,752 on June 30 and increasing reliance on external financing.
Fastener segment sales during the first half of 2026 fell 4% to $12.05 million, reflecting lower sales to non-automotive customers, particularly in the construction and electronics markets, which more than offset modest growth in sales to automotive customers from OEMs.
“Elevated interest rates and ongoing economic uncertainty continue to contribute to softer consumer demand, prompting inventory adjustments and cautious procurement behavior among our automotive customers.”
On a brighter note, fastener sales to automotive customers rose 9.8% to $4.2 million during Q2, while first-half sales edged up 2.2% to $7.8 million. But fastener segment sales to non-automotive customers, including those in the construction and electronics industries, dropped 20.6% to $2 million in Q2, and fell 13.8% to $4.9 million in the first half.
Consolidated Chicago Rivet sales decreased 3.1% to $14 million in the first half, driven by lower order volumes from fastener customers amid softer demand across key end markets and broader macroeconomic conditions.
“Customers exhibited more cautious purchasing behavior during the period amid elevated interest rates, inflationary pressures, a renewed shortage in semiconductor supply, and ongoing economic uncertainty resulting, in part, from geopolitical events.”
H1 gross margins dropped 42.2% to $2.6 million, impacted by increases in raw material and labor costs, as well as ongoing inflationary pressures across manufacturing operations.
“Significant uncertainty remains in the manufacturing sector as companies like ours continue to navigate the potential impacts of tariffs and numerous market factors and geopolitical events that may impact our business in the coming year.”
Adding to its woes, the company said it was not in compliance with certain covenants under its $3 million bank credit agreement at December 31, 2025, March 31, 2026 and June 30, 2026, forcing Chicago Rivet to replace the revolver with a secured $1.5 million term loan from a 10.35% shareholder that restricts dividends.
Founded in 1920, Chicago Rivet manufactures rivet setting machines, rivets, fasteners, and precision-engineered components for the automotive, heavy truck, appliance, cutlery, cooperage, HVAC, medical, furniture, and electronic industries.
