Closures and layoffs at Genova Products
Genova Products, the Davison, Mich.-based maker of vinyl plumbing products, says loan defaults and material shortages have led to job cuts and at least one permanent plant closing.
The company’s plant in Fort Wayne, Ind., was shut down earlier this week. That move followed December cut backs in Paducah, Ky., where more than 100 employees were laid off as the future of the plant was put in doubt.
Until recently, Genova had operated five manufacturing plants around the country, in addition to its headquarters location. Genova has been a fixture at hardware and plumbing trade shows, where it often displays a mascot made of PVC pipe. The company was founded in 1962.
Genova's plumbing products include "the Boss."
The company did not return calls to Genova headquarters from HBSDealer seeking further comment. And calls to facilities in Faribault, Minn., and Rensselaer, Ind., also went unanswered. (The phone number listed on the corporate web site for the Sparks, Nev., facility plays the message: "the number you have dialed is unallocated.")
Layoffs began Jan. 28 in Fort Wayne, Ind. A former Fort Wayne employee shared a termination letter with Fort Wayne's NBC. It reads:
“Over the past several months, Genova has faced various economic challenges. These challenges resulted in the issuance of a letter by Genova’s secured lender advising Genova that it was in default of its loan covenants and confirming that no additional funding would be provided to Genova for its operations. Over the past several months, 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.
It continued: “We expect the closing to be permanent in nature. This closing will involve cessation of all operations and termination of all employees at the site.”
In Paducah, Ky., a possible plant closing and actual layoffs have led to plans for a lawsuit against the company, according to WPSD 6 news.
Genova Products' website describes the company as one of the largest suppliers of plastic plumbing and building products in the country.
The company’s plant in Fort Wayne, Ind., was shut down earlier this week. That move followed December cut backs in Paducah, Ky., where more than 100 employees were laid off as the future of the plant was put in doubt.
Until recently, Genova had operated five manufacturing plants around the country, in addition to its headquarters location. Genova has been a fixture at hardware and plumbing trade shows, where it often displays a mascot made of PVC pipe. The company was founded in 1962.
Genova's plumbing products include "the Boss."The company did not return calls to Genova headquarters from HBSDealer seeking further comment. And calls to facilities in Faribault, Minn., and Rensselaer, Ind., also went unanswered. (The phone number listed on the corporate web site for the Sparks, Nev., facility plays the message: "the number you have dialed is unallocated.")
Layoffs began Jan. 28 in Fort Wayne, Ind. A former Fort Wayne employee shared a termination letter with Fort Wayne's NBC. It reads:
“Over the past several months, Genova has faced various economic challenges. These challenges resulted in the issuance of a letter by Genova’s secured lender advising Genova that it was in default of its loan covenants and confirming that no additional funding would be provided to Genova for its operations. Over the past several months, 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.
It continued: “We expect the closing to be permanent in nature. This closing will involve cessation of all operations and termination of all employees at the site.”
In Paducah, Ky., a possible plant closing and actual layoffs have led to plans for a lawsuit against the company, according to WPSD 6 news.
Genova Products' website describes the company as one of the largest suppliers of plastic plumbing and building products in the country.