Well maybe one good thing about the buyout is that they're not strapped with excessive high overhead costs and debt.
And if you look into the background of the buyer Plastic Industries, they have a lot of money from strong growth and sales over the years. A good & smart private company like that should be able to regrow Knight back into decent shape. The new owner isn't going to let his money get thrown away.
Will Knight survive?
Even if it's only on a smaller scale, you can bet your last dollar that they will!