Jasper Rubber could be closing its doors by the end of April if a buyer is not found.
Employees were notified February 27th in a letter from parent company First Brands Group that the Jasper facility is slated for shutdown. All local operations will be impacted, including the company’s locations along West First Avenue.
The notice was issued under the federal WARN Act, which requires employers to provide 60 days’ advance warning before mass layoffs or plant closures. According to the letter, operations are expected to begin winding down April 30th, with job terminations taking effect that same day.
While the company anticipates the shutdown will be permanent, officials indicated there remains a possibility another company could purchase the assets and continue operations. Other First Brands facilities around the country have recently closed abruptly, prompting scrutiny over compliance with federal notification laws.
The letter also made clear that bumping rights — which are sometimes used in union workplaces to allow senior employees to take positions from less senior workers during downsizing — will not apply. Because the closure is expected to be permanent, those protections will not be offered.
First Brands filed for Chapter 11 bankruptcy protection in September of last year. The once-major global auto parts supplier has been embroiled in legal trouble involving former top executives. Federal prosecutors allege the company’s former leadership engaged in fraudulent financial practices, including concealing liabilities and improperly securing billions in loans. The U.S. Department of Justice claims the company carried more than nine billion dollars in liabilities while holding only a fraction of that in available funds.
Now operating under new management as a debtor in possession, First Brands has also filed a civil lawsuit against its former leadership, accusing them of misappropriating hundreds of millions of dollars and contributing to the company’s financial collapse.
Unless a buyer steps forward, the Jasper Rubber facility is scheduled to cease operations April 30th.
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