“Please understand this decision was made with great remorse and only as a last resort after attempting every viable alternative to enable the company to continue operations as a going concern,” added the letter, which the Dayton Daily News obtained this week.
The message said the last day of operations was Jan. 8, with “all employees terminated as of that date” and only a “skeleton crew” remaining to help with completing the wind-down process.
The letter goes on to say the business is working with a lender to “secure repayment of borrowed funds” with the goal of liquidating collateral.
“Unfortunately, the liquidation of the collateral will leave a significant deficiency owned by the company to the secured creditor,” Claude’s letter also says.
There are no plans to seek bankruptcy protection, the letter states, but distributions will be made in the “same manner and priority” as provided for in the bankruptcy code.
A human resources specialist with Select referred questions to Claude and a Grand Rapids, Mich. law firm. Phone and email messages seeking comment were left with Robert Wolford, an attorney with that firm. Wolford represents Select, as well as other companies going through reorganizations, mergers, acquisitions, recapitalizations and other transactions.
According to the company’s web site, the business also has a campus on Janney Road. It was unclear if this decision affects that location or only the Heid facility. Visitors entrances to Select’s plants at 60 Heid and 220 Janney were both locked Tuesday morning. A sign on the door to the lobby at the Heid plant said the lobby was permanently closed.
A spokesman for the Ohio Department of Job and Family Services said Tuesday he had seen no WARN (Worker Adjustment Retraining Notice) Act letter from the company regarding layoffs.
Select Industries was founded in January 1970. The business focused on metal forming and production of drivetrain and vehicle interior products, at one time for General Motors and other original equipment manufacturer automakers.
In 2009, the city of Dayton applied for a Montgomery County development grant to help Select invest $2.55 million to build a 28,500 square-foot addition on Heid.
At the time, the project was expected to help retain 105 jobs and create 50 jobs at an average yearly salary of $44,600 within three years, the city of Dayton said then.
About the Author
