By Michael Lauzon
CORRESPONDENT
Published: October 29, 2014 5:49 pm ET
Updated: October 29, 2014 5:51 pm ET
Image By: Xten Industries Facebook Page
Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill.
Xten, an injection molder based in Kenosha, Wis., filed a Worker Adjustment and Retraining Notice (WARN) with state officials on Oct. 22 saying that it would close the headquarters plant on or about Dec. 21. But, according to the notice, if a buyer is found, the plant may stay open.
“Any buyer will see the value of Kenosha as operational and viable, with a great team,” stated Xten CEO Matthew Davidson in a statement to Plastics News.
“It is our intention to continue to operate as a going concern throughout this transition,” Davidson said in a WARN letter.
Xten President Bill Renick noted in the WARN letter that an auction will occur in the next 60-90 days. Commercial Plastics is the stalking horse bidder, whose offer might be topped by another company. Commercial Plastics’ offer includes a plan to operate the business, maintain the work force and serve customers until a sale, according to the notice.
Commercial Plastics officials could not immediately be reached for comment.
“We anticipate that the employees will continue to be employed during the term of the Assignment for the Benefit of Creditors,” Renick said in the notice.
Commercial Plastics “may choose to hire some or all of the employees at Xten’s current location, but that will not be known until the conclusion of the auction process,” Renick stated.
About 120 workers in Kenosha will be affected by the closure. If a sale is not completed, job losses will begin on Dec. 21 and extend about 14 days. The site is not unionized.
The assignee for Xten is Patrick Cavanaugh of High Ridge Partners of Chicago, Ill. He also is assignee for Xten’s Lockport, Ill., operation, which is scheduled to be auctioned off on Dec. 4 by Branford Group.
Xten said in early September that it plans to shut the Lockport injection molding facility, which it acquired two years ago. Xten notified the state of Illinois that it plans to close its Lockport operation beginning Oct. 29 with final layoffs scheduled for Nov. 11. About 82 workers will be affected by that closure.
Xten, a custom injection molder, bought the Paramount Plastics LLC business in Lockport, renamed PP IL LLC, largely to access large tonnage injection presses and boost its molding capacity, a company official said at the time.
Xten reported $48.5 million in injection molding sales in 2013, according to Plastics News’ most recent ranking.
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