Thread Number: 21400
TTI Now Owns Oreck
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Post# 239433   7/8/2013 at 22:41 (3,915 days old) by bagintheback (Flagstaff, Arizona)        

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Not too thrilled about this. I hope they have some decency and keep the uprights made in America. 

 

The founding family behind Oreck Corp. has lost its bid to buy the company out of bankruptcy protection.

In a statement released tonight, company officials announced that Royal Appliance Manufacturing Company – which already owns vacuum giant Hoover – submitted the winning bid during Monday’s bankruptcy auction.

“(Royal) was the winning bidder of the auction of the company following its Chapter 11 bankruptcy filing,” according to a statement. “Royal's intention, subject to court approval at a hearing scheduled July 16, is to close the transaction (on) July 24."

Financial details of the winning bid were not released. The Oreck family had originally submitted a “stalking horse” bid of $23 million at the beginning of the bankruptcy process.

The family’s effort, led by former CEO Thomas Oreck, was aimed at keeping the company’s manufacturing jobs in the United States. The company has more than 200 employees at a manufacturing facility in Cookeville, Tenn., along with several dozen corporate employees in Nashville. The company also employs several hundred workers at Oreck retail locations across the country.

There was no immediate work on what the deal would mean for Oreck employees.

Oreck, a vacuum cleaner and home-care products company, filed a Chapter 11 reorganization petition on May 6.

The company was founded 50 years ago by David Oreck, who became a household name by appearing on the company’s infomercials that were a staple of television advertising for years.

The company had previously been based in New Orleans, La., but moved north following Hurricane Katrina.



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Post# 239436 , Reply# 1   7/9/2013 at 00:37 (3,915 days old) by NYCWriter (New York City)        
Don't hold your breath ...

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Companies aren't in business to be decent.

And Chinese companies aren't in business to provide jobs for Americans.

Those jobs don't have a snowball's chance in hell.


Post# 239437 , Reply# 2   7/9/2013 at 00:50 (3,915 days old) by tylerawells (-)        

Sadly, I agree with you Matt. I doubt the company will be close to anything it is today in a years time. I don't even want to think about the kind of things they're going to stick the Oreck name on.


Post# 239440 , Reply# 3   7/9/2013 at 04:26 (3,915 days old) by jmurray01 (Scotland)        

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This is a sad day for Oreck.

I have never owned one but have heard many good things about them and am disappointed that yet another company will be ruined by TTI. Just look at Hoover.


Post# 239441 , Reply# 4   7/9/2013 at 05:14 (3,915 days old) by tolivac (Greenville,NC)        

Another sad day for vacuum cleaners-TTI will mean the kiss of death for Oreck.There goes another US vacuum maker.Guess it will all go to China.Now older US made Oreck vacuums will be prized!

Post# 239451 , Reply# 5   7/9/2013 at 08:56 (3,915 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        

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Never say never - I mean, though the vacuums may be made in China, perhaps TTI will allow Oreck to keep design in the U.S - that's effectively how the Vax Mach Air came about since it was designed in the UK before being made in China. Dependent on what factory Oreck has, TTI may well decide to keep a manufacturing base alive. It really depends on what they will do with the company.

However I have just found a late report from MSN suggesting that the downfall of Oreck were down to a number of things:

1) "...The direct sales model wasn't working. Where do you go to buy a vacuum? Wal-Mart (WMT +0.69%) or Target (TGT +0.80%), perhaps? Maybe Amazon.com (AMZN -0.20%)? Not enough people thought about going to an Oreck store or calling the company directly..."

2) "...The company didn't jump on bagless technology. Shoppers have been hot for bagless vacuums for years, especially after Britiain's James Dyson unveiled his popular line in the U.S. in 2002. It took more than a decade for Oreck to embrace bagless technology..."

3) "...It clung to infomercials for too long. Oreck needed to modernize its advertising and marketing strategies, but it inexplicably stuck with late-night infomercials for a long time..."

4) "...It looked like your grandma's vacuum. Oreck's designs were boxy and out of date. Only recently has the company unveiled sleeker, more modern models...."


I don't think I have read such a poorly misled report from MSN before though - citing that brand's downfall on the way a model looks is pathetic - I mean, Kirby uprights are hardly modern looking, yet they are built to last, same with SEBO's X uprights/ Windsor, same with others. None of those brands offer bagless either, which isn't a big downfall for a company who produce vacuums. The advertising maybe has a clue as to why market saturation for Oreck products may be low, but I don't think that's a big issue, either- I mean, some other brands don't have huge advertising either but go on reliability, performance and efficiency with other means of promotion.

I think it would be at loss not to have Oreck uprights on the market; clearly the launch of the bagless uprights earlier this year was probably down to market pressure and to show that Oreck could produce a bagless model. However, their core market has always been bagged vacuums - it would be sad to see another bagged brand fall by the wayside, regardless of whether I personally like them or not - having had an Oreck, I know of the pros and cons but they have to be admired for the fact that they use bags to capture the dust, regardless of the problems I had with mine.


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Post# 239457 , Reply# 6   7/9/2013 at 09:14 (3,915 days old) by jmurray01 (Scotland)        

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I can't believe my eyes - their downfall was because of the design and the fact they didn't immediately run to the drawing board to produce a bagless model?

What utter rubbish.

If that were true, then why are Kirby and Numatic still successful brands? They look far from modern (the former moreso than the latter) and neither have, or have ever had a bagless model.

I don't know who wrote that article but they should be sacked.


Post# 239462 , Reply# 7   7/9/2013 at 09:56 (3,915 days old) by gsheen (Cape Town South Africa)        

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Personally never cared to much for Oreck, You can't compare oreck to Kirby or Numatic, Numatic sells because of cleaning company's you see it at work and so you want one at home. The best thing Numatic ever did was the face. Its there signature.

Kirby is a massive heavy duty vacuum, In the time we had Orecks in SA all they did was break and shatter. I am not a fan of Kirby either but lets be honest here its a vacuum cleaner that will last years.

I think the article has some good points, They should have redesigned there look, even if they stuck wit bags they needed on board tools and some convenience to make it interesting. Just because we as collectors like it does not make it a viable selling vacuum. If it can't sell then its dead in the water.

Case in point I love upright vacuums, and hate cylinder vacuums But if I only sold upright vacuums I would go out of business. Consumers speak and they did in the case of Oreck now we will have to see what happens to them.

Does anyone know what the tie between oreck and Ivac of Netherlands is, Ivac produces the fast brand of Vacuums and I see on their website they have something to do with Oreck too


Post# 239463 , Reply# 8   7/9/2013 at 09:59 (3,915 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)        
WEll,

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Now, just sit back and watch.
This could go the exact was HOOVER did. They're still talking about it in North canton.
Now, we might see Oreck Wind tunnels. yikes.
Designers.... sharpen your pencils.


Post# 239464 , Reply# 9   7/9/2013 at 10:10 (3,915 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        

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Well you know already that Oreck also sell SEBO commercial uprights under their name - so IVAC probably has the same deal.

Post# 239466 , Reply# 10   7/9/2013 at 10:23 (3,915 days old) by Turbo500 (West Yorkshire, UK)        
yet another company will be ruined by TTI. Just look at Hoo

turbo500's profile picture
Slightly off topic, but TTI can hardly be held responsible for the downfall of Hoover. Hoover shot themselves in the foot with free flights, which forced them to sell as they were going bankrupt. The Hoover Cleaner, as we all know and love it, ceased to exist as soon as Candy took over.

It's also important to note that Hoover Europe cleaners are not made by TTI, they are made by Candy. Hence Hoover US machines cannot be branded Hoover in the UK, they are instead branded "Vax".


Post# 239467 , Reply# 11   7/9/2013 at 10:27 (3,915 days old) by Turbo500 (West Yorkshire, UK)        

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Now, back on topic...

I am by no means an Oreck fan and always viewed them as an overpriced, glorified carpet sweeper. I've also found David Oreck's fame as the "inventor" to be a big fat lie, as he bought an old design from Whirlpool (previously sold as the MacDonald Electric in the UK) - he did not invent the cleaner at all.

However, this is a blow to the US economy and another brand swallowed up by a Chinese giant and for that, I am very sorry to see them go. They deffinitley had a market, both commercial and domestic, and are certainly iconic in design. They were also very reliable and well made, despite their questionable performance. So to see a reputable, reliable brand go to TTI is quite sad indeed!


Post# 239468 , Reply# 12   7/9/2013 at 10:35 (3,915 days old) by ncovert (Grove City, PA)        
Yippee...

Another Chinese company sucks up an American company (no pun intended.)

Now TTI owns Royal, Dirt Devil, Hoover, and Oreck.

 

I wonder what company is next? Anything but Kirby!!


Post# 239481 , Reply# 13   7/9/2013 at 11:32 (3,915 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        
Not Quite True regarding TTI & Candy

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Actually Chris, that's not quite accurate regarding TTI & Candy.

There have been a few instances where Hoover Europe have brought over Hoover/Dirt Devil U.S models in recent years. Lets not forget TTI took control of Hoover U.S in 2006. The Freejet stick vacuum was originally designed and produced by Dirt Devil which you'll be aware was thereafter part of the TTI deal. Thus, Hoover Europe marketed the Freejet and other selected models from the Dirt Devil empire before and after TTI took over both Dirt Devil U.S and Hoover U.S,.

Hoover Europe still import the Freejet and the Freejet Plus models today.

Hoover U.S did sell a Hoover Europe canister vacuum in the form of the Morphy Richards based "Studio" bagged cylinder vacuum, a model I believe is still showing on the U.S website, the S1361. I had a red Studio model for a time and found it to be a highly efficient and well made budget bagged cylinder vac.





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Post# 239485 , Reply# 14   7/9/2013 at 12:03 (3,915 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)        
Can you imagine how things would be now if

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possibly that airline mess never happened? HOOVER would still have been a worldwide empire. To think that it was pulled to its knees like that was awful. Stay tuned....

Post# 239489 , Reply# 15   7/9/2013 at 13:30 (3,915 days old) by Turbo500 (West Yorkshire, UK)        

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Hi Ryan,

Ah, thanks for the input there, much appreciated!

Those Studio cleaners have been branded allsorts - I have a Goblin Ace 1300 which is the same cleaner. There was another Hoover variant of it too, but I can't recall what it was called. It was pale yellow and I think it just said "1300" on it. I know it was branded as Goblin Ace, Morphy Richards Jazz & Compact, JMB, Hoover, Vax Mojo, and Dirt Devil. Not bad cleaners though, especially considering what you'd get for the price these days.


Post# 239492 , Reply# 16   7/9/2013 at 13:57 (3,915 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)        
It was posted in a newspaper in Feb of 2013 that

gottahaveahoove's profile picture
TTI laid off 150 workers in the El Paso Plant, reducing the workforce there to nearly half. But, TTI reports their biggest profit year.

I was told a while back, that the Convertible was coming back. I was also told the lots of jobs were coming back.... to El Paso. It seems that there has been a shift. hmmmmmmmmm


Post# 239498 , Reply# 17   7/9/2013 at 14:56 (3,915 days old) by jmurray01 (Scotland)        

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I know what you mean John - things could have been so different had that not happened and Hoover had still been owned by the Hoover family.

But unfortunately it did happen and we have to live with the consequenses.

I do think though that at some point Hoover would have been sold to a bigger corporation, as when you think about it - if "the Hoovers" were really interested in keeping the company within the family, they wouldn't have sold it in the first place (even if it meant filing Chapter 11 and starting again), but they did, so I think it would have gone at some point.



Post# 239505 , Reply# 18   7/9/2013 at 15:17 (3,915 days old) by KirbyClassicIII (Milwaukie, Oregon)        

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Well, will TTI bring back any jobs to El Paso this year?

~Ben


Post# 239511 , Reply# 19   7/9/2013 at 15:35 (3,915 days old) by isufan11 (Minneapolis )        
Maybe.....

Just maybe TTI is buying Oreck to make their floor care line bigger in order to divest the entire line in the future? Having 4 will known brands in a line would make them appealing to a buyer and easier to sell. Since TTI makes over 80% of its profit off of their power tool line, such as Ryobi, Milwaukee, & Homelite, and it has acknowledged recently in their financial report, that they are struggling in the floor care area it would only make sense for them to want to sell the entire line off making a profit.

Microsoft is probably the best example of this when they were buying up small tech companies (and sometimes large companies) so they could sell like companies in a large grouping, making a profit. Sometimes they would spend 2-times as much as a company was worth just to use it to help sell grouping.

Just a thought......


Post# 239516 , Reply# 20   7/9/2013 at 16:11 (3,915 days old) by KirbyClassicIII (Milwaukie, Oregon)        

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If TTI ever does decide to spin off its floor care division in the future, maybe it could wind up in the hands of Warren Buffett's Berkshire Hathaway, which owns Kirby?

~Ben


Post# 239517 , Reply# 21   7/9/2013 at 16:22 (3,915 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        

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From what I read years ago TTI wants to diversify products right across the appliance ranges; having just one other vacuum cleaner brand is perhaps just small fry. Of course it would be good to see some more bagged uprights but also for them to come to the UK.

Post# 239522 , Reply# 22   7/9/2013 at 16:28 (3,915 days old) by jmurray01 (Scotland)        

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That's just it though Sebo_Fan, TTI will probably start making lots of bagless Orecks and put the bagged version on the back burner. I could be wrong but doubt it.

Post# 239527 , Reply# 23   7/9/2013 at 18:03 (3,915 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        

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As sure as you were when you said the Turbo Power would disappear off Hoover UK's website? Still there by the looks of it.

Looking at Royal vacuums US website, are there any bagless uprights on there? Doesn't appear to be any - there is a bagless hand held based on the current Dirt Devil hand held and of course the TTI cordless windtunnel stick vac. The rest of the uprights are all bagged, soft bag heavy style ones and hardbox plastic uprights.

Thus, it is clear to see that by the website alone also backed by TTI that Royal have yet to go down that bagless upright route. Even if TTI do that to Oreck, I'm sure buyers will be offered bagged uprights - TTI wouldn't waste the opportunity to make money off bags and filters alone.


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Post# 239529 , Reply# 24   7/9/2013 at 18:32 (3,915 days old) by daknx1994 (Southern Indiana)        

Wow I wasn't expecting to hear this today. There is always hope that jobs in Tennessee will not be lost and moved to China. Just trying to stay positive as I would hate to see all those people lose those jobs.

Post# 239530 , Reply# 25   7/9/2013 at 18:33 (3,915 days old) by daknx1994 (Southern Indiana)        

I agree with sebo_fan that there will probably still be bagged Orecks as vacuum companies make a good deal of their profit off of the bags and filters.

Post# 239550 , Reply# 26   7/9/2013 at 22:37 (3,914 days old) by KirbyClassicIII (Milwaukie, Oregon)        

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I also want to point out that TTI does not manufacture its product directly all the time; rather, they get some of their stuff from some private contractor in China called "King Clean."

~Ben


Post# 239554 , Reply# 27   7/9/2013 at 23:10 (3,914 days old) by dysonman1 (the county)        

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King Clean also makes some Eureka bagless uprights. Virtually identical to Hoover. Example: The Eureka Zoom is virtually the same vacuum as the Hoover Sprint. King Clean also makes Euro-Pro vacuums. They are pretty much the 'go to' manufacturer for a lot of vacuums world-wide.

Post# 239583 , Reply# 28   7/10/2013 at 06:32 (3,914 days old) by jmurray01 (Scotland)        

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Thing is though, there is barely any money in it for TTI in terms of bags and filters as the majority of vacuum owners these days buy generic bags and filters.

Post# 239598 , Reply# 29   7/10/2013 at 10:30 (3,914 days old) by bagintheback (Flagstaff, Arizona)        
Some Good News

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Tom Oreck said he also understands that Royal plans to keep the company’s manufacturing plant in Cookeville, which has more than 200 employees.


“I’ve been told they intend to continue to operate the plant and even to expand it,” he said.


What’s still in doubt, though, is the fate of the 90 employees at the company’s headquarters in Nashville, as well as hundreds of workers at company-owned and franchised Oreck sales and service centers across the country, Tom Oreck said.


“In speaking with (the Royal people) after the auction, I really do think that they recognize that the Oreck customer and the brand are different (from Hoover) and that the infrastructure is there to support the customer,” he said. “They are smartbusiness people, so they should be able to figure it out.”


A Royal spokeswoman did not return calls on Tuesday.



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Post# 239633 , Reply# 30   7/10/2013 at 13:12 (3,914 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        

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Maybe in the UK, buyers buy copy bags but its not a common thread globally where the Oreck brand sell in.

Buyers can buy what they want but you don't get "generic high filtration" copy dust bags in the same way that Oreck produce them. They used to offer three to four different types when I had my Oreck XL all those years ago.

Another aspect of Oreck that I personally would see sorry to go are their air purifiers. I know that some owners have had bad results from them but I lived in a flat in Edinburgh near a factory where the home had two Oreck purifiers and I found them to be largely excellent. TTI could develop that further as well.


Post# 239637 , Reply# 31   7/10/2013 at 13:15 (3,914 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)        
I just can't see TTI

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leaving Oreck "in tact" in its current locations.The HOOVER bag plant, (Building 2) closed on New Year's Eve of this year. a very sad day, indeed.
But, time will tell.


Post# 239705 , Reply# 32   7/10/2013 at 18:11 (3,914 days old) by daknx1994 (Southern Indiana)        

I hope that they stay to their word and keep the plant here in the States. I hope they don't stop selling in the service centers. I love going into them as they are always nice and very friendly and they always have what I need. This is a good thing to hear though.

Post# 239738 , Reply# 33   7/10/2013 at 20:40 (3,914 days old) by Vac_whisperer ()        

This bugs me. Too many great conpanies have been bought out by TTI and ruined. Whos next? Kirby?
Were in what i like to call the "TTI Armageddon".


Post# 239739 , Reply# 34   7/10/2013 at 20:40 (3,914 days old) by Vac_whisperer ()        

This post has been removed by the member who posted it.



Post# 239805 , Reply# 35   7/11/2013 at 15:35 (3,913 days old) by Vackid (Pennsylvania)        

In regards to the Oreck Clean Home Centers, they have been dying off ever since the last owners made the vacuums available in Walmart and online for less then the Clean Home Center's wholesale cost. When Oreck decided to break their contract and go into Walmart, many Oreck stores brought in other brands like Miele and in some instances Riccar.They then just became vacuum stores. Also most of the stores were never compensated for doing the "free" tune-ups. For many dealers, Corporate expected them to pick up the tab since they were sending customers into their store, and corporate believed that the impulse and after sale items they would sell these customers would make up for the service bills, in some cases, that worked, although from dealers I talked to, It didn't.

The executives that drove Oreck into the ground failed to realize exactly who their market was. It wasn't 30 year olds, it was the baby boomers. The older crowd that was struggling with a Kirby or other 20lbs + vacuum. The Oreck will never be, and shouldn't try to be a Dyson. The Dyson has captured the 20-50 year old audience, Oreck had the 50-100 audience. You cannot be all things to all people. They were doing well at selling these vacuums to older people. If they worked on that and expanded that even more, they wouldn't be in the mess they are today.

I also wouldn't automatically assume that TTI will run Oreck into the ground. I know many people assumed that Royal would be dead when TTI took them over. Well I carry Royal in my store and they are an excellent piece for our lower-mid range customers. Some of them are just the old Hoover designed but some of them are actually original designs that work and sell very well. The S18 is a great little canister for under 300 dollars. Did anyone notice how Royal tops out their power nozzle canisters where Miele begins? I think Royal executives realized, they aren't Miele. They aren't high end anymore, so they made the best entry-mid range vacuums they could. They're doing well for the dealers and doing well for the company. We sell their all metal uprights commercially and we get rave reviews because they are bulletproof.

We can sit here and try to guess all we want one what will happen to Oreck but only time will be able to tell.
As a TTI warranty station, I'm curious to see if we will also become the warranty station for Oreck. We have an Oreck dealer about 20 minutes from my store and they've been doing Oreck for YEARS but, I've been signed up with TTI first, so only time will tell if we will now be responsible for Oreck warranty repairs or they will keep them on as a dealer.


Post# 239930 , Reply# 36   7/12/2013 at 21:43 (3,911 days old) by kirbyvertibles (Independence, KS)        

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welp gee I can't wait to see $65.00 Oreck cyclonic swivel glide visions at walmart! DAMN

Post# 239931 , Reply# 37   7/12/2013 at 21:48 (3,911 days old) by 1926700 ()        
and i cant WAIT!!!!!

till they discontinue the Commercial Guardsman Convertible (which has been around for 43 years, no less) and we will now see a Guardsman II which will be a orange and black commercial Oreck,  part of there "improved" commercial line. After all the Guardsman looks to old!....lol


Post# 239939 , Reply# 38   7/12/2013 at 23:13 (3,911 days old) by vegassucks ()        
Original Oreck built in Germany

The original oreck was built in Germany, I seem them in a thrift store years ago in Southern California. The Oreck did have a great brush and served a purpose for older users as they were light weight. They always gave my Carpet a nice combed look.

Post# 259613 , Reply# 39   12/15/2013 at 15:39 (3,756 days old) by director12 ()        

I heard years back Oreck scored the worst for deep-cleaning.

Post# 259617 , Reply# 40   12/15/2013 at 15:54 (3,756 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)        

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When my parents had the their UK version Oreck XL the only thing I liked about it was the bushy brush roll and the fact that it can deep clean very well.


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