Demolition Company That Tore Down Yankee Stadium Files Bankruptcy
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Demolition Company That Tore Down Yankee Stadium Files Bankruptcy

August 10, 2012

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A construction company that played a prominent role in the destruction of the old Yankee Stadium is filing for bankruptcy protection, according to a report from the Wall Street Journal.

Sources say that Demco Inc., which is based in Buffalo, New York, has been unable to find work after completing its $20 million demolition work on Yankee Stadium, the iconic baseball venue in the Bronx that was destroyed after nearly a century of use.

The recent recession took a big bite out of the company’s bottom line, but for reasons that are not immediately obvious, according to sources. Most of the company’s revenue comes from selling the pieces of the demolished buildings, not the actual demolition work itself. Thus, even though the demolition business is still in decent shape, Demco couldn’t find any buyers for its salvaged and recycled materials.

Sources say that Demco used to profit from contracts that let it sell these raw materials to other construction firms, but as the price of these raw commodities has dropped, Demco’s salvage-related revenues have taken a downward turn.

Of course, Demco has also seen a flagging number of demolition requests, according to the company’s bankruptcy lawyer, who explained the difficulties in a court filing this week.

In the attorney’s words, during a recession, potential customers “choose to defer incurring the expense of demolition work” because they either don’t have “an immediate need for demolition services” or don’t “have access to the capital necessary to fund both such demolition” projects.

During busier times, Demco used to employ more than 300 employees, but it has fired dozens of workers in recent months and is only working on eight projects right now.

Still, if it can successfully reorganize its finances in bankruptcy court, Demco has a chance at survival, especially given its storied past. In addition to tearing down Yankee Stadium, Demco also destroyed the 72,000-seat Orange Bowl stadium in Miami in 2008.

During the demolition, Demco salvaged artifacts that were later used in the construction of the new Miami Marlins baseball stadium. And Demco was also responsible for the demolition of the floating Palace Casino that crashed into the Mississippi coastline during Hurricane Katrina, according to sources.


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