Dive Brief:
- North Carolina-based electronics recycling company Zloop Inc. and two affiliates, Zloop Knitting Mill and Zloop Nevada, filed voluntary chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware.
- According to the petition by Chairman and CEO Robert M. Boston, the debtors held approximately $25 million in assets and total liabilities of $32 million. Additional listed debt is a $3.5 million mortgage and about $400,000 in trade debt.
- Zloop has locations in Hickory, NC; Perrysburg, OH; and Fernley, NV.
Dive Insight:
In 2014, Zloop was positioning itself as the sustainable solution for e-waste management in the U.S. as it grew through acquisitions and was opening new facilities. Additionally, the overall business of e-waste recycling is growing, therefore it's curious that Zloop failed to keep its head above water.
In his bankruptcy affidavit, Boston describes the debtors' business as providing three types of services: "i) end of life recycling for electronics or electrical equipment; (ii) on-site and off-site secure and audited data destruction; and (iii) preconsumer, postconsumer and mixed plastics recycling."
In its reorganization petition, the company is not seeking additional financing but to use cash collateral to finance the chapter 11 cases.
