In This Article:
Drastic Change is Needed At Servotronics Today to Safeguard the Interests of Shareholders, Employees and Customers
Beaver Hollow Wellness Urges Shareholders to Vote the WHITE Proxy Card "FOR" Its Four Highly Qualified Director Nominees and "WITHHOLD" on all Company Nominees except for Karen L. Howard
ELMA, N.Y., May 13, 2025 /PRNewswire/ -- Beaver Hollow Wellness, LLC ("BHW"), the largest shareholder of Servotronics, Inc. (NYSE American – SVT, "Servotronics" or the "Company"), owning 15.2% of the outstanding shares, today issued a dire warning about the Company's future under its current Board of Directors. Continuing a pattern of bad faith, obstruction, and brazen disregard for fiduciary responsibility, the Board's secrecy and defiance, if left unchecked, may ultimately lead to the collapse of Servotronics' operations in Western New York — putting hundreds of local jobs at risk, destroying shareholder value and threatening the economic viability of one of the region's last remaining advanced manufacturers.
The Financial Truth Behind Servotronics' Spin
While Servotronics issued a press release for Q1 2025, touting a modest quarterly profit and operational turnaround, a closer review of the Company's financial filings paints a far different picture—one of financial distress, deteriorating liquidity, and structural instability.
Key facts from the Company's own 10-Q filing include:
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Cash from operations fell to negative $1.6 million — a $2 million deterioration from Q1 2024;
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Line of credit borrowing spiked 75% in a single quarter to $3.7 million;
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Unrestricted cash dropped to just $37,000;
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Interest expense rose nearly 17%, further straining profitability; and
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SG&A costs rose due to legal, proxy, and investment bank fees, not operational growth.
This performance does not reflect a healthy or stable business. It reflects a management team attempting to obscure reality from shareholders while preparing a sale or dismantling of the Company without transparency or stakeholder input. The reported profit, driven by accounting maneuvering and one-time addbacks, does not signal sustainable financial health.
Since 2022, BHW has continually pressed for improved transparency, accountability, and oversight from the Company's directors.