The state had awarded the company the loan with the understanding that it would stay in Connecticut 10 years. The list is updated frequently, so check . In the weeks leading up to the coupon magazines mass layoffs, managers were on a tear, asking advertisers to pay up front and offering sales representatives bonuses for bringing in the most money, Buckley said. But in court papers, Hamilton denied any illegal conduct. On 06/01/2015 MALLOY MITRA filed a Labor - Other Labor lawsuit against OPENGATE CAPITAL LLC. Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc <TMO.N> sold it a Mexican plant last year without revealing that a drug . His father, who majored in mathematics at a German university, worked at the Los Angeles Department of Water and Power. He was also in talks about a reality TV show built around his private equity business. Sign in to add some. It agreed to provide $3.1 million in financing in November 2013 for five days. In September 2013, OpenGate acquired PennySaver for $22.5 million. OpenGate is perhaps best known for its 2008 purchase of the print version of TV Guide for a nominal price plus assumed debt. Above, workers attend a May 26 meeting. OpenGate Capital has an overall rating of 3.9 out of 5, based on over 15 reviews left anonymously by employees. OpenGate Capital has a history of buying companies, only to close operations shortly thereafter, leaving communities across the country in the lurch. (D.I. 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. The firm first gained recognition for the acquisition of TV Guide Magazine in December 2008,[2] and the publication's turn to profitability in the first quarter of 2010.[3]. 1:13-cv-01475 in the Delaware District Court. Its not like they didnt know they had to give 60 days notice, and its not like they didnt know there were some significant financial issues, said Richard McCune, a Redlands lawyer who filed a lawsuit seeking class-action status on behalf of former employees. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Thanks for contacting us. Most of my clients are in default. Securities class action lawsuits are filed on behalf of a class of investors or a class of holders of a particular security. Andrew Nikou Founder, Chief Executive Officer OpenGate Capital 10250 Constellation Boulevard, 30th Floor OpenGate has said that it boosted sales at the plant by 20%, but that the shutdown was forced by creditors and others who refused to make concessions on contracts that were not sustainable. And employees became increasingly worried when PennySavers CEO, vice president of finance and the vice president of human resources all quit, Buckley said. Federal Civil Lawsuit California Central District Court, Case No. However, after making a few payments, Fusion defaulted on a loan from the state of Connecticut, said State Sen. Cathy Osten, who is also the first selectman of Sprague the small town where Fusion was the main employer. At OpenGate, we strive for a culture that promotes open communication and empowerment of fellow team members.. [28][29], Past closures also included PennySaver USA and Hamilton Scientific. Only months after signing the new union contract, employees were notified that the mill would close, said Richard Harrelle, president of the Steelworkers Local 1840, which represented around 100 of the approximately 145 people who worked at the company. To date, OpenGate has laid off 678 California workers from the Pennysaver classified ad magazine, 100 Wisconsin workers at its Golden Guernsey dairy plant, 140 employees of the Connecticut boxboard company Fusion Paperboard, and nearly 200 employees in Texas, Arkansas, and Wisconsin, who worked for Hamilton Scientific, an OpenGate-owned laboratory furniture company. Language links are at the top of the page across from the title. A state claim for wages was filed in the dairys pending Delaware bankruptcy case. In 2005, Nikou founded OpenGate Capital with $30,000 from his own savings. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, was profitable when OpenGate bought it. Its website says its businesses generate annual revenue of about $3 billion, making it a small player. Inequality.org is a project of the Institute for Policy Studies, Content licensed under a Creative Commons 3.0 License, Inequality Quotes by Historic World Leaders, Private Equity Can Kill: Fight Wall Streets Deadly Power in Nursing Homes, Labor Celebrates as Michigan Senate Votes to Overturn Right-to-Work Law. Nikou and OpenGate executives wouldnt discuss PennySavers closing. He has a passion for people and a knack for recognizing what is needed to help businesses in . This post was guest authored by Elisa McCartin. Similarly, employees at Golden Guernsey learned their company was closing when they showed up to work only to find the doors locked. An investigation by the states Department of Workforce Development in 2013 cited the dairy for violating a federal law requiring a 60-day warning of mass layoffs and said it owed workers $1.6 million. The efforts by Cerberus Capital Management to unload Maxim magazine in late 2013 may go down as one of the most litigious divestments in publishing history. But there were no stocks because the elder Darden was never a part of the deal, it is alleged. Mexican plant In 2013, Opengate Capital Group LLC filed suit against Thermo Fisher Scientific for selling it a manufacturing plant controlled by a drug cartel. [6] Nikou graduated from William Howard Taft Charter High School in Woodland Hills, California, where he was active in the Persian community. Financing terms required PennySaver to meet certain financial goals and maintain various debt ratios at certain levels. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc, Court Case No. Mr. Moazami's career spans 30+ years in the technology industry; predominantly in operating roles and the last nine years as a professional venture capitalist & advisor in Silicon Valley. The company was starting to be profitable. OpenGate is moving the plant to Mexico anyway. With its global presence and deep focus on target sectors and investment types, OpenGate is known to bring innovation and transformational value to complex transactions. We need a new push to pass this law. With a strategic international presence and a focus on corporate carve . (Reuters) - Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc TMO.N sold it a Mexican plant last year without revealing that a drug cartel was operating there. The firm focuses on the acquisition of lower-to-mid-market businesses in the industrials, business services, and technology sectors. A $300-million (minimum) gondola to Dodger Stadium? Nikou instead tries to generate goodwill as a philanthropist and has even started his own foundation, which boasts of a mission driven by values empowering individuals and communities. Nikou still sits on numerous boards, including that of the Hammer Museum in Los Angeles. Headquartered in Los Angeles, California, . Opengate did not specify what damages it was seeking. OpenGate Capital, a global private equity firm, announced today in a joint statement with its portfolio company, Hufcor Inc. ("Hufcor"), the world leader in the design, manufacturing and installation of movable partitions and flexible space management solutions, the appointment of Mr. Koben Miceli as Chief Executive Officer, effective immediately. The trustee, Charles Stanziale, said OpenGate made no net investment in the dairy after its initial purchase and the value was consistently eroded over the months leading to bankruptcy. This article was originally published on OtherWords. Through it all, few employees understood the depth of the companys distress. Thermo Fisher was not immediately available for comment outside of normal U.S. business hours. Dean Starkman previously covered Wall Street for the Los Angeles Times; he left in 2016. [34] On October 7, 2014, an official ceremony was held to celebrate the inauguration of the first Esperanza Azteca America program at the Florence Nightingale Middle School in Los Angeles. In October 2019, OpenGate Capital closed on the firm's second institutional fund, OpenGate Capital Partners II, oversubscribed on its original $450 million target, with approximately $585 million in commitments. Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions. Capital One said it tried to work with PennySaver on the closure, but to no avail. [30][31][32], Nikou sits on the Board of YELLOW, the non-profit organization founded by Pharrell Williams. Only one of OpenGate's subsidiaries included as a plaintiff is a California LLC. In too many cases with private equity, big firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. We work with every customer to find a workable solution, but unfortunately we werent able to reach an agreement in this situation.. This case was filed in U.S. Courts Of Appeals, U.S. Court Of Appeals, Ninth Circuit. May 17-18, 2023 Hilton Tower Bridge, London, May 23-24, 2023 Convene 117 West 46th Street, New York, Get limited access to our industry news, analysis and data, plus regular email updates. The lawsuits allege that a company or individual violated securities laws and are brought on behalf of the class. Employees of other OpenGate companies have suffered similar fates. OpenGate has had successes. No tags have been applied so far. . LOS ANGELES, August 23, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced today it . Shortly after the presentation, senior PennySaver staff members were asked to write to OpenGate partner Jay Yook, outlining how they would turn around the company, said Elaine Buckley, who at the time was PennySavers vice president of outside sales. How Palm Springs ran out Black and Latino families to build a fantasy for rich, white people, 17 SoCal hiking trails that are blooming with wildflowers (but probably not for long! On 09/21/2021 Finsa Portafolios, S A de C V, filed a Property - Personal Property Fraud lawsuit against OpenGate Capital, LLC,. Former employees of other OpenGate Capital portfolio companies have similar stories of hardship, and some warn that the ex-PennySaver employees are up against serious challenges. In fact, prosecutors allege, it was the senior Dardens neer-do-well son who had already spent three years in jail on an unrelated stock swindle looking to buy the lad mag. 1 at 17.) "Top Dealmaker Andrew Nikou: The founder of Opengate Capital is making a name for himself on reclamation projects," Danielle Fugazy, Mergers & Acquisitions, 12-7-2010. OpenGate Capital is a global private equity firm active in the lower middle-market and focused on acquiring corporate carve-outs, divestitures and special situations throughout North America, Western Europe and Latin America. The private equity firm bought the dairy in September 2011, after the Department of Justice required its previous owner, Dean Foods, to sell it because of antitrust concerns that Dean had too large a share of the school milk business. The companys shares closed at $84.46 on Friday on the Nasdaq. This is ClassAction.org's current list of open lawsuits and investigations. Debra Clancy, a senior account manager at PennySaver, joined about 30 other former employees as they yelled towards the 17th floor of a building that houses OpenGate Capital in Century City during a recent protest against the company. OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation, and growth. OTHER FILED BY OPENGATE CAPITAL LLC ON 07/15/2015 [+] Read More [-] Read Less; 07/16/2015. The owner, private equity firm OpenGate Capital in Century City, had turned over management of the firm in December to a restructuring and liquidation company, Realization Services Inc. in Bedford . Jul. Official press release ScioTeq - EN. This spring, 166 workers in Janesville, Wisconsin awoke to a nightmare. 2023 NYP Holdings, Inc. All Rights Reserved, this week sits in the legal dock in Manhattan federal court, pleaded guilty to his own Maxim-related fraud charges in November, Woman has 'loud, full body orgasm' in the middle of LA concert, $76K NJ boarding school admits falling 'tragically short' in protecting teen who killed self after bullying, 'rapist' taunts, Meghan Markle's ailing dad says he refuses 'to be buried by her' in 'final ever' interview, Rihannas iconic Met Gala looks through the years, Fans question North Wests lavish pre-Met Gala gift for Kim Kardashian: No way, Perez Hilton: Boring Meghan and Harry need to give up and move back to UK, Elon Musk Tells Bill Maher Woke Mind Virus Is Dangerous On Real Time, Prince Harry's coronation role still a mystery as William's is revealed. Founder & Chief Executive Officer at OpenGate Capital . OpenGate tried to buy Maxim in early 2013 but was outbid by Darden Media Group. 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 wrote. OpenGate Capital, the private equity firm that owns their employer, Hufcor, announced it was moving their plant out of Janesville taking those workers jobs and livelihoods with it. So far, six lawsuits have been filed against OpenGate Capital and/or PennySaver in local and federal courts for failing to notify employees of mass layoffs, according to Richard McCune, a lawyer representing PennySaver employees. Several pre-fund, legacy investments that were made with the personal capital of Andrew Nikou and the Partners at OpenGate Capital were sold: Benvic was sold to InvestIndustrial in December 2017, NorPaper Avot-Vallee was sold in 2018 to a private investor, and in January 2019, NAKAN (the largest division within Ivy Group) was sold to Westlake Chemical Corporation. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, is one of many companies reeling from the private equity model in which firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. 20201 an 1 mois. Over the past three years, OpenGate Capital has shut several of its portfolio companies, laying off employees with little to no warning in some cases. Those companies included a dairy in Wisconsin, a boxboard manufacturer in Connecticut and a laboratory furniture maker with operations in several U.S. states and Mexico. In court papers, the company said the trustees allegations are without merit. In February, the PennySaver building on Orbiter Street in Brea was sold for $14 million, according to public records. E-FILING TRANSACTION 2392305 RECEIVED ON 07/15/2015 . [26], Prior to raising its first institutional fund, OpenGate also acquired the Waukesha, Wisconsin plant and brand rights to Golden Guernsey Dairy as the result of an antitrust divestment of Dean Foods, which was required to sell the plant to purchase GGD's other plants in the state. OpenGate nevertheless was lured back in as a short-term lender to Darden. OpenGate Capital is planning the launch of its third flagship fund over the next 6-12 months, with a target of up to $700m, according to a source close to the situation., Funds, Buyout, France, UK / Ireland, Benelux, Southern Europe, DACH, Nordics, CEE, OpenGate Capital, Exclusive At age 25, he moved to Paris to help open the firm's first European office. [20] As of August 2018, OpenGate's first fund had completed nine platform investments, five of which had closed in 2016. Janesville, Wis. - U.S. Please check your spam or junk folder just in case Hufcor employees, Janesville residents, and union organizers have rallied against OpenGates greedy and exploitative practices. Roughly $4.9 million of the $5.5 million of Weinbergs cash, forwarded to Newkirk, disappeared on Nov. 12, 2013, when a fake email, purportedly from Weinberg, released the money, prosecutors charge. Confronted with this looming loss, Hufcor employees, Janesville residents and CWA union organizers have rallied against OpenGates greedy and exploitative practices. [5] After graduating, he worked for the Patent and License Exchange, a start-up financed by Softbank Capital.[5]. Former PennySaver employees are administering a crowdfunding site to help those left in the lurch. Instead, he sits on numerous boards and hes even been in talks about a. built around his private equity business. employees in the middle of a work day and failing to give workers their final paychecks. janv. Hamilton Scientific would pay employees once it got its funding together, according to the April PE Hub article. OpenGate Capital, the private equity firm that owns their employer, Hufcor, announced it was moving its plant out of Janesville, taking those workers jobs and livelihoods with it. 10250 Constellation Blvd Fl 30, Los Angeles, California, 90067, United States. See here for a complete list of exchanges and delays. Founded in 1979, Chemsolv is a diversified distributor offering more than 1,000 chemicals including solvents, plasticizers, coolants . In 2012, Nikou was a recipient of The M&A Advisor's "Top 40 Under 40" award,[4] for the West Region. "They basically told us 'We don't want to get to . Newkirk was fully involved in the scam, prosecutors allege. But OpenGate never got a dime after it lent the cash as the alleged fraud was uncovered. Description. Doing otherwise could create confusion, disruptions and other difficulties with operations.. Founded in 2005, OpenGate Capital is a private equity firm based in Los Angeles, California. Banks dont do this. Every major bank in the U.S. covers the payrolls.. 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. 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. [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]. Please prove that you're human. The allegations are often complex, and the plaintiffs must prove that the defendant violated securities . OpenGate Capital Group, LLC, OpenGate Capital Management, LLC and PennySaver Investors, LLC's (collectively, "OpenGate"), which seeks to dismiss the Complaint3 filed by Don A. Beskrone, Chapter 7 Trustee for the estates of PennySaver USA Publishing, LLC, et al. It said the once-popular magazine was losing money and is now profitable. Senator Baldwin was a co-sponsor of the Stop Wall Street Looting Act, the first major effort to reform the private equity sector, in the last Congress. They think its a big joke. "OpenGate buys Cascades recycled box makers," Los Angeles Business, 6-14-2011. 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. A global investment manager with a local touch. The sudden closure and lost pay did not surprise former employees of other companies once owned by OpenGate Capital the Los Angeles-based private equity firm that bought PennySaver in 2013. You may occasionally receive promotional content from the Los Angeles Times. At their side are elected officials who know that the whole country needs tough measures to reform private equity. By continuing to use this site, closing this banner, or clicking I Agree, you agree to the use of cookies. Lawyer Harvey Newkirk, formerly with the Bryan Cave firm, this week sits in the legal dock in Manhattan federal court, accused of concocting a fraud with Calvin Darden Jr., a convicted felon, to rob investors of millions of dollars by falsely presenting successful businessman Calvin Darden Sr. as the leading force behind the deal. Employees at other OpenGate-owned companies have voiced similar complaints. The first named plaintiff, OpenGate Capital Group LLC, and four of its subsidiaries named as plaintiffs are creatures of Delaware law as well. Its a story about predatory private equity run amok. All rights reserved. Nikou was born in 1977 in Vancouver, British Columbia, Canada. Emerging managers like OpenGate are seeking reception with limited partners, who generally have been happy to stick with their established relationships in uncertain markets. it's been delivered there. [22] The deal was the fifth platform investment from OpenGate's debut fund. 19, Ex. The legislation will end "the failed experiment of gutting Michigan workers' rights," said one lawmaker. Our tax dollars should make life better not go to waste on bloated military contracts and Pentagon boondoggles. Even as hundreds of American workers have suffered from OpenGates schemes, Andrew Nikou, the OpenGate founder and CEO, has not faced any meaningful financial or social consequences for repeated business failures at the hands of his firm. 2:17-cv-04360-SB-E ("Underlying Lawsuit") under Private Equity Liability Insurance Policy No. OPENGATE CAPITAL GROUP, LLC, OPENGATE CAPITAL MANAGEMENT . They cut salaries. All rights reserved. Thermo Fisher made none of the upgrades that were recommended by its security advisers in January and February 2012, and took no meaningful action to fortify or further secure the Facility in response to the continuing cartel infiltration, the complaint said. Uber drivers and other app-based workers are facing an all-out safety crisis. It would. [35][36][37], Nikou is married with children and resides in Nevada.[7]. Its the biggest business closure in Janesville since the Great Recession. In 2011, the firm acquired NorPaper Avot Valle, a specialty paper manufacturer based in France. You get out of default.. After decades of pro-corporate globalization, people numb to its effects might write off Hufcors closure as a tragic but ultimately unavoidable consequence of a deadly pandemic and economic upheaval. PennySaver workers are suing OpenGate in state and federal court, alleging that the company failed to provide adequate notice about the shutdown. I did NOT send that email [releasing the escrow fund].. While Janesville was once a manufacturing hub, it has experienced the devastating consequences of unfettered corporate greed. Once OpenGate snapped up by OpenGate in 2017, OpenGate's new regime heightened tensions and ended a relatively amicable relationship between management and the workers of IUE-CWA Local 84811 . 14 at 5-6; D.I. . On May 27, 2021, 166 workers in Janesville, Wisconsin awoke to a nightmare. 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. It bought Gabriel Ride Control, a shock absorber maker losing $20 million a year, returned it to profitability and preserved 1,400 jobs before selling it in 2012. But not all OpenGate deals have worked out. The private equity firm claimed that the Reynosa, Mexico-based manufacturing facility, which it acquired as part of a larger deal from Thermo Fisher, had been regularly infiltrated by gangs from the Gulf Cartel since at least 2011, according to a copy of the complaint seen by Reuters. For ScioTeq, 2020 was again a record . This case was filed in Orange County Superior Courts, Civil Complex Center located in Orange, California. OpenGate is a global private equity firm that acquires and . Employees who started work later arrived to find the facility locked. Our Standards: The Thomson Reuters Trust Principles. OpenGate Capital, a Los Angeles firm that amassed $5 billion in revenue during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. .
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