Dive Brief:
- Chicago-based scrap metal firm Pure Metal Recycling appears to be preparing for liquidation. The firm filed a document earlier this month stating it will "cease all production activity and terminate the operations" across its seven facilities.
- The company cites an inability to secure funding as a reason for the closings, according to a notice from Pure Metal Recycling CEO Chris Dandrow.
- Pure Metal Recycling — formerly named Acme Refining — had three locations in Chicago, three more across areas of Illinois, and one location in South Bend, IN.
Dive Insight:
The scrap market has been severely hurting scrap recyclers across the nation, as more facilities shut down in the face of bankruptcy. Earlier this month, Reidsville, NC-based B.P. Greer Recycling Inc., a buyer and seller of scrap metal for commercial use, filed for Chapter 11 reorganization.
"The scrap metal industry right now is absolutely getting killed," said Charles M. Ivey III, attorney for B.P. Greer, to the Triad Business Journal. "It’s not just Greer. It’s all small recyclers getting squeezed because of the worldwide drop-off in demand for scrap metal."
Recycling Today reported that a potential investor had been interested in buying the Pure Metal Recycling's facilities and having Burnham, IL-based Scrap Metal Services step in. However, the investor reportedly withdrew its bid.
Dandrow wrote in a letter to the state of Indiana: "The closing will be permanent and will result in a complete closing of all facilities. The plant closing will affect the jobs and employees who are currently holding those jobs ... The hourly employees are not represented by a union."
