Freedom Plastics will be placed up for sale
JANESVILLE — Faced with mounting debt and a shortage of time and money to satisfy creditors, the owners of Freedom Plastics have put the Janesville manufacturer of PVC pipes and fittings up for sale.
One owner said Tuesday he hopes no jobs are lost in Janesville and that the company can double its workforce when the national economy improves.
Freedom's 155 employees—including 86 in Janesville—learned of the pending sale Tuesday.
Freedom started a court-supervised receivership sale that should allow the company to operate without interruption until a buyer is found, hopefully as soon as March, said Freedom President Steve Scaccia.
Scaccia said Chapter 11 bankruptcy was rejected as an option because it's a long, costly process.
"Bankruptcy can go on for years, and the bank isn't going to fund you for years," he said. "The bank has agreed to fund us for five weeks.
"We believe this is the best option to get our creditors paid and preserve the jobs of our employees."
In 1987, Freedom filed for Chapter 11 bankruptcy protection after years of struggle. Scaccia teamed with local businessman J. Michael Borden and a handful of others to buy the company and pay off its creditors.
"That was a company that need to be rejuvenated," Scaccia said, referring to the company in 1987.
Now, he said, Freedom is "poised for great things."
Freedom supplies the wastewater, plumbing, irrigation and industrial markets. It's been walloped by a national downturn in housing and construction markets, as well as price increases in the resins used to make PVC.
The company has spent heavily on workforce training and in 2007 completed an $8 million expansion at its facilities on Arch Street.
"We put all of the money back into the company," said Scaccia, one of the company's owners. "We figured there would be a downturn in the industry, but we wanted to be ready for the rebound.
"Everything just fell off the cliff; this wasn't a normal downturn, and we got shelled."
Scaccia said Freedom is well positioned to be a dominant force in the economic rebound, especially as an infrastructure stimulus package makes its way through Congress.
"This is obviously a huge disappointment for Freedom's owners because the long-term future of this company is positive, given the quality of our people and products and the kind of infrastructure investment the country is about to make," he said. "But to preserve the company, we need to complete this process.
"As owners, we just don't have the time or the personal wherewithal. It's a complete loss for the ownership, but it's all about saving the jobs."
Scaccia said there are no guarantees a new owner would maintain jobs in Janesville.
But a smart owner would, he said.
"This plant has been perfectly maintained, is well-run and is recognized nationwide for its efficiency," he said. "Our assumption is that the new buyer would want to keep the people that made that happen."
Since its founding in 1976 in Janesville, Freedom has grown to include warehouses and plants located across the United States. It operates a total of 28 PVC pipe extrusion lines in Janesville and Fort Pierce, Fla., as well as a plant in Idaho.
Feb 17, 2009 at 5:29 a.m.
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Any Information about the new owners??
Feb 6, 2009 at 4:44 p.m.
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Right on Zep.I`m not trying to fight with this person.He or she seems very defensive.
Feb 6, 2009 at 10:18 a.m.
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Did I say everyone in the front office was
evil?I don`t think so.You sound more bitter than I do Dip.Do you feel gulity about something?
Feb 6, 2009 at 9:42 a.m.
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tguy,
I specifically put "and/or" in my response to cover having or not having a degree and running a company. You should take note that the "bonuses, luxury cars, jets" are perks enjoyed by a extremely small percentage of white collar workers. I know it is a lot easier to lump everyone in the front office as evil since that is the general stance the union takes, but it is extremely foolish.
Feb 6, 2009 at 9:25 a.m.
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Rabbit, i was a white collar worker in the corporate office at freedom plastics. How else could i make these claims? I saw it first hand.
Feb 6, 2009 at 5:57 a.m.
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Another local business bites the dust.
Feb 6, 2009 at 5:04 a.m.
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Not what I was trying to do Dip.I just didn`t like your remark.Yes I`m happy with what I`m doing.I don`t blame upper management for the bad economy. But there are many cases in other businesses where the white coller workers are way over paid for what they do.Extra bonuses,luxury cars,jets.All because they have a college education.A college education doesn`t mean they know how to run a company.
Feb 5, 2009 at 10:58 p.m.
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tguy,
My comment did not question you being happy as a blue collar worker. If you are happy with what you are doing, than that is great! I just find it funny that union workers complain that "The white collars suck up all the money". You could have been a white collar worker with different education and/or choices in life. If you want to make the most money, nine times out of ten you go white collar. Simple fact of life. Don't blame "the man" for making a buck.
Feb 5, 2009 at 4:45 p.m.
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Tom, I can read and I agree with him.
Feb 5, 2009 at 2:10 p.m.
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Rabbit maybe you missed diplomat`s slight touch of sarcasm.
Read it again.
Feb 5, 2009 at 12:50 p.m.
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You just contradicted yourself. Keep playing the blame game. Just don't use any facts, it might contradict your story.
Feb 5, 2009 at 12:41 p.m.
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You don't sound happy. You sound bitter.
Feb 5, 2009 at 12:07 p.m.
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Hey thedip maybe we`re happy being blue collar
workers.Most of the time though we do the hardest work for the least amount of pay.
The white collars suck up all the money.
Feb 5, 2009 at 11:32 a.m.
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I love how the union workers at freedom plastics automatically attack the character of the people working in the front office. Did you ever think that selling a company for profit in this economy is a success? It isn't their fault you are not working a white collar job.
Feb 5, 2009 at 10:11 a.m.
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ok hiii98 I forgive you.
Feb 5, 2009 at 9:23 a.m.
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SarahB your right, Karma as a way of biting back... :(
thanks "biggirl" for your comments~
Feb 5, 2009 at 9:20 a.m.
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tguy
95% of the people at FP were good & honest people. Its the coorporate team who caused this. I should have rephrased my previous cold comments, as I am sorry about all the other many many good folks who may be losing their jobs, but this company was run like Enron.
Feb 4, 2009 at 8:08 p.m.
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I hope everything works out for the union members.We gave a lot up lately. From raise freeze's to "early out's" to temp. layoff's. This union has given it's all to help out.I blame former President Bush and all of his hack's.The democrat's aren't totally clean in this mess.Rep. Barney Frank has let this happen also.
Feb 4, 2009 at 7:48 p.m.
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I mean FAULT.
Feb 4, 2009 at 4:43 p.m.
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How is the tanning business? I figured with the economy places like that would struggle?
Feb 4, 2009 at 4:27 p.m.
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hiii98: Holding resentments is not good for business.
Feb 4, 2009 at 3:49 p.m.
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Screw you hiii98.It`s not our falt you got fired.There are some good people at Freedom Plastics.
Feb 4, 2009 at 10:53 a.m.
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hii98: I'm so glad you found a job. Yes, it rings hollow that they care about keeping jobs here, and yes, the issue as to the pay of managers is relevant.
Feb 4, 2009 at 10:25 a.m.
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screw freedom plastics, they are all about saving jobs?? What a joke, that company had the worst turnaround of any job I have ever had. I was fired from there and thank god, i now own a business that is making a profit rather than declaring bankruptcy due to management being extremely overpaid and under qualified.
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