During the past week, two companies have announced big layoffs in the State of Wisconsin. Appleton Coated LLC. Filed a receivership petition with the Wisconsin Department of Workforce Development. Appleton Coated will attempt to sell its assets and its facility at 540 Prospect Street Combined Locks, Wisconsin. The news comes as the company struggles with debt problems. Appleton Coated is expected to continue operations, while it attempts to find a potential buyer.
The company manufactures coated and uncoated paper products. Declining demand, excess capacity and price competition were cited as major problems for the company. If the company is unable to find a buyer and the facility is ultimately closed, Appleton Coated expects Wisconsin to suffer from the permanent elimination of 620 employees. 439 of those positions are bargaining unit members. The remaining 181 are not.
If the company is bought out, there is a possibility that some or all of the employees will be able to keep their jobs and the facility could remain operational. The privately-owned business was purchased three years ago by 10 members of the management team. The layoffs are expected to begin on October 16, 2017.
Also, Fortis Management Group LLC filed a WARN notice with the Wisconsin Department of Workforce Development on August 22, 2017. Following the transition of roughly 36 of 65 Fortis facilities to new operators, a number of local and remote workers will be laid off. The workers at the company’s Milwaukee, Wisconsin office are expected to be impacted.
The office, which is located at 111 West Michigan Street in Milwaukee, will cease operations upon the successful transition of all 65 facilities to new operators. According to the WARN notification, there is a possibility that some employees with the Milwaukee Office will be able to gain employment with the new operators. The company also suggests that the new operator could occupy and utilize the Milwaukee Office for their operations.
However, Fortis does not know how many, if any, employees will be offered employment. An exact date had not been established for the transition of all 65 facilities to the new operations. Fortis anticipates that the closure of the Milwaukee Office in its entirety will take place before September 30, 2018.
At this point in time, the Milwaukee Office employees approximately 225 employees. Fortis expects 25% of those employees to be laid off within sixty days and the facility to be shut down completely by the end of September 2018. The company notes that employees may remain employed beyond this date due to business need or through a court-supervised receivership proceeding.