A failure to find a buyer has led to Genova Products’ decision to close plants, including one in Fort Wayne where 116 had been employed, the company said in its Jan. 31 notice to the state of Indiana.
Genova will permanently close its 9501 Airport Drive, Fort Wayne, and 1100 E. Elm St., Rensselaer, locations by Feb. 10. The Fort Wayne location employed 116, with 88 at the Rensselaer operations, according to the Worker Adjustment and Retraining Notification Act of 1988 notice that was also sent to Fort Wayne Mayor Tom Henry’s and Rensselaer Mayor Stephen A. Wood’s offices.
According to the Rensselaer Republican, all the Rensselaer employees had been laid off indefinitely in late November, with 100 jobs eventually being eliminated. It also laid off 120 at its Paducah, Kentucky, site, which also closed, as well as its Faribault, Minnesota, location.
The company stopped paying Fort Wayne employees’ health insurance on Dec. 31.
With the notification to the state of Indiana that the layoffs are permanent, the affected employees will now be eligible for training and other help from the state.
Genova, based in Davison, Michigan, makes vinyl plumbing pipes and fittings, gutters and decking. Most of the Fort Wayne jobs are trucking driving and warehouse positions.
“Over the past several months,” the WARN from Genova HR director Ron Seidl said, “Genova has been working tirelessly to try to locate a strategic partner to either purchase Genova’s assets and continue operations or infuse necessary capital into Genova’s operations.”
Genova received notice from its lender that it’s in default of its loan, according to the WARN notice. That allowed Genova to file under a Defaulting Company exception to the 60-day notification of plant closings and mass layoffs requirement for employers of 100 or more workers.
“Genova maintained its operations until such time the bank no longer provided funds for raw materials, and did so with no reasonable notice,” according to a news release from Genova director of operations Joseph Pusateri in Paducah.
The company believed several times it had secured more funding, “only to have the deal sour for one reason or another,” Pusateri wrote.
The news release sent last week also said the company had a potential buyer and was sending the WARN notice to Kentucky officials while the bank examined the terms.
Genova also has a location in Sparks, Nevada.