OpenGate tried to buy Maxim in early 2013 but was outbid by Darden Media Group. Last year, an OpenGate portfolio company called Fusion Paperboard in Sprague, Conn., shut down, eliminating 145 jobs and defaulting on the $1.8-million balance of a state-subsidized loan, according to the state Department of Economic and Community Development. Hufcor employees, Janesville residents, and union organizers have rallied against OpenGates greedy and exploitative practices. OpenGate Capital Shuts Gate on Janesville Plant Nikou, its founder, is a board member at the Hammer Museum and, until recently, at the Museum of Contemporary Art. Andrew Nikou is the founder and CEO of OpenGate Capital, a global private buyout firm. [12] In 2010, Nikou was behind the OpenGate bid for Newsweek, owned by the Washington Post Company, but the firm did not acquire the publication.[13]. And the firm shut down its Fusion Paperboard plant just three years after acquiring it and only a few months after entering into a six-year contract with the local steelworkers union. All quotes delayed a minimum of 15 minutes. OpenGate, which acquired PennySaver in 2013, specializes in buying units of larger companies and reselling them. But Fusion closed the plant only a year and a half after receiving the loan, Osten said. Instead, he sits on numerous boards and hes even been in talks about a. built around his private equity business. Earlier this year, employees at Hamilton Scientifics Wisconsin facility received notices that they would be laid off in 60 days but were then furloughed, according to an article from PE Hub, a publication that focuses on private equity companies. 19, Ex. OpenGate Capital partners with companies to . He said that cost cuts and other moves had pushed PennySaver back toward profitability by May and the company was nearing the end of negotiations to refinance the line of credit or sell the company when Capital One stopped returning the companys calls. The employees say they didn't get money owed to them, including their final paychecks and vacation time. All in the name to make us more efficient. For ScioTeq, 2020 was again a record . Class Action Lawsuit List | Open & Current Cases | ClassAction.org A court-appointed trustee also sued OpenGate for siphoning money from Pennysaver through a variety of shady tactics. and prioritize people, not private equity profits. Hufcor workers battle private equity owner with shame ad in Los Angeles They just dont flat out care about being a reputable business, from my perspective, Osten said. We need to take legislative action in Congress to rip up the predatory playbook that these private equity firms use to leave workers with nothing but pink slips and lost livelihoods, Senator Tammy Baldwin of Wisconsin, , the first major effort to reform the private equity sector, in the last Congress. The Motion was joined by defendants Andrew Nikou and Jay Yook.4 The On 09/21/2021 Finsa Portafolios, S A de C V, filed a Property - Personal Property Fraud lawsuit against OpenGate Capital, LLC,. [11] Also in 2009, OpenGate purchased children's publishers Fleurus Presse and Junior Hebdo from Groupe Le Monde. You may occasionally receive promotional content from the Los Angeles Times. The suit claimed that Thermo Fisher had rushed negotiations and provided misleading answers to due-diligence inquiries. The acquisition financing was arranged via a unitranche by Deutsche Bank as . 1:13-cv-01475 in the Delaware District Court. 10250 Constellation Blvd Fl 30, Los Angeles, California, 90067, United States. in Texas, Arkansas, and Wisconsin, who worked for the laboratory furniture company Hamilton Scientific. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. About Andrew Nikou - Andrew Nikou A runner, rock climber and board game enthusiast, Lauren is perpetually training for the next race day. Please check your spam or junk folder just in case Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, was profitable when OpenGate bought it. [23] OpenGate rebranded the business EverZinc; within Umicore it had generated $425 million in revenue in 2015.[24]. While OpenGate was in negotiations to buy the business from Thermo Fisher, armed militants took cover in the Reynosa buildings cafeteria while fleeing their rivals, according to OpenGates lawsuit. OpenGate Capital Fully Exits Investment in EverZinc The firm faced six different lawsuits after abruptly laying off Pennysaver employees in the middle of a work day and failing to give workers their final paychecks. OpenGate Capital is a private equity firm with offices in Los Angeles and Paris that strives to acquire and optimize lower middle market businesses throughout North America and Europe. More than two years after the dairy closed, with bankruptcy proceedings still unfolding, the Storm family hasnt seen the $23,000 they estimate they are owed for the lack of notice and unpaid vacation days. Even though Hufcor was profitable when OpenGate bought it, maintained operations during the worst of the pandemic, and even advertised $16 hourly wages and generous benefits as recently as January 2021, OpenGate has nevertheless decided to relocate just as the pandemic eases. (D.I. Contact the writer: 714-796-2286 or lwilliams@ocregister.com. Senator Tammy Baldwin (D-WI) sent a letter today to Andrew Nikou, founder and CEO of OpenGate Capital, asking the Los Angeles-based private equity firm to honor their agreement with former Hufcor employees in Wisconsin. This spring, Hamilton Scientific, a De Pere, Wis., lab equipment maker owned by OpenGate, abruptly shut down, laying off 80 people there and 190 at plants in Texas and Arkansas without notice, according to a lawsuit filed by former employees.
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