J. H. Shale retired from the board in 1926, and sold his stock to father and son J. H. and E. S. Williams, giving them control of the firm. A petition for bankruptcy was filed against the firm soon afterwards by a group of suppliers at which time its liabilities where listed at about $300,000 and assets $100,000. Shale purchased the firm's assets and good will for $110,000 in 1927, and formed the Celco Corporation in New York., with headquarters in Norwalk and with himself as president, Earle D. Button treas, Walter A. Hall secretary. In mid 1928 the firm reorganized as the A. B. Chase-Emerson Corporation under the same management, citing that the Celco Corp. had been "formed hurriedly for temporary use". The same year the firm announced that they were adding a line of motorboats to their products.