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Staff Report
Hews Media Group-Community News has learned that the process to close the PennySaver resembled a covert operation with employees getting called out into the parking lot on Friday, given the bad news, and escorted back to their departments.
Sources are telling HMG-CN that there were over 15 security guards that escorted the employees one-by-one back to their desks to gather all of their belongings and were told to leave the premises immediately.
One employee told the LA Times, “They said, that’s it. We’re done. We’re closing. Everybody pack up your things and leave.”
But apparently the process resembled something out of a Gordon Gecko movie with employees being escorted back like prisoners to clean out their desk.
Los Angeles investment firm OpenGate Capital bought the PennySaver from Harte-Hanks in September 2013.
The LA Times reported today that OpenGate has a track record of closing companies. In 2013, another of its investments went under. Golden Guernsey Dairy in Waukesha, Wis. in much the same manner.
Experts say that OpenGate likely created a separate corporation for the PennySaver which would enable the company to declare bankruptcy and decimate any smaller companies owed money by PennySaver.
The larger creditors/vendors will likely get 10-20 cents back on what is owed to them.
