Ontario,California-based RePlanet, operator of redemption and recycling centers, has abruptly closed its 300 redemption sites and laid off 750 employees without appropriate notice.
According to a statement from RePlanet President and CFO, David Lawrence, “With the continued reduction in State fees, the depressed pricing of recycled aluminum and PET plastic, and the rise in operating costs resulting from minimum wage increases and required health and workers compensation insurance, the Company has concluded that operation of these recycling centers and supporting operations is no longer sustainable. We regret that these site closures will negatively impact our employees, grocer partners, customers and the recycling community at large. We thank our employees for their hard work and dedication in providing convenient recycling opportunities to our valued customers across the state of California.”
The company intends to bypass bankruptcy proceedings and file for insolvency under a state form of bankruptcy known as an “Assignment for the Benefit of Creditors” where assets are liquidated by an assignee. Not only is this assignment less expensive for insolvent companies, it is more protective of the directors and officers as it spares them public disclosure of what can be embarrassing details.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?