Real change in the course of Berger's business did not occur until the late 1980s. In 1989, the company was acquired by Inovex, by then aiming to exit life-care communities all together. Thus, in 1989 Inovex entered the business of manufacturing and distributing roof drainage supplies, acquiring the stock of Berger Bros, which became an Inovex subsidiary. The following year, Inovex was renamed Berger Holdings, Ltd., a holding company for its major operating subsidiary, Berger Bros Company.
A sluggish economy in the early 1990s caused sales at Berger to slump. However, according to a 1991 story in the Philadelphia Business Journal, Berger's management placed the greatest share of blame for its failing financial health on its lending institution, Meridian Bank. The bank had over the past year cut off funding to Berger and called in its loans, forcing the company to file for protection under Chapter 11 of the Bankruptcy Code. To protect its asset base and ongoing operations, the Feasterville holding company's two subsidiaries -- Berger Brothers (roof drainage products), and Graywood Products Co. Inc. (vinyl house siding)--also filed under Chapter 11 in order to reorganize their finances. At the time, based on 1990's revenues, Berger Holdings was the 143rd - largest company in the Philadelphia area, according to the Philadelphia Business Journal.
The company continued to operate during its reorganization period, laying off about 60 of its workforce. By 1993 Berger had modernized and modified its production facilities, machinery and equipment; it had also expanded existing product lines and publicized the quality of its aluminum-based roof drainage products (RDP). A plan for emerging from Chapter 11 was approved in 1993, and by 1994, under the reorganization, Berger had paid off its outstanding loans to Meridian, having been granted a loan by The CIT Group/Credit Finance Inc. Berger Holdings formed a new subsidiary, Berger Financial Corporation, which, in turn, became parent to Berger Bros. The company reported net sales of $15.6 million in 1995.