Core Systems in Painesville stops production, more than 300 people lose jobs

[OhioChick]

Source: Newsnet5

Posted: 02/22/2013

PAINESVILLE, Ohio - More than 300 people lost their jobs on Friday as Core Systems, LLC in Painesville closed its doors for good.

The company stopped production at about 8:30 a.m. because of financing issues for Wells Fargo Bank, human resource manager Cindy Hutchison said.

The company manufactures plastic parts for appliances. Company president Bill Loebbaka said Core Systems was unable to pay the bank because of money it didn't receive from a major appliance company.

"Whirlpool gave us no notice and pulled about $35 million to $40 million dollars of work out of our plant," he said.



Read more: http://www.newsnet5.com/dpp/news/local_news/oh_lake/core-systems-in-painesville-stops-production-240-people-lose-jobs

[Warpy]

1. let me guess, they found a jobber in China to do it with near slave labor

and will be able to pay themselves bigger bonuses even after factoring in shipping costs.

This sucks. And then they wonder why our economy continues to be on the skids.

[Mr.Bill]

2. And in the process

they created 300 more people that likely cannot buy their products now.

[Journeyman]

3. No. A little research shows Core was in breach of contract, failed to meet delivery schedules. . .

and despite efforts by Whirlpool to improve conditions, including signing a written Performance Improvement Plan in January 2013, with steps aimed at improving Core's "quality, performance, delivery and competitiveness," ten days later Core was again unable to complete its orders.

This article from NewsNet5 is both incomplete and shoddily written. Core seems to have been run by morons who could neither pay their bills nor fulfill their obligations. As to Whirlpool giving no notice, it seems they gave Core at least a multi-month notification, going well back into 2012, then filed suit for breach of contract back at the end of January, after Core failed to meet its obligations.

Hey, I'm as wont to believe corporations are screwing people as anyone else, but in this instance the incompetent party seems to be Core. I don't know where Whirlpool plans to get their parts made in the future, but the truth is, they were not getting them made now by Core. All they had with Core was a contract, which Core was incapable of completing. Whirlpool moved to find an alternate supplier both to keep its production on track, and to save its own employees.


Whirlpool files breach of contract suit against Ohio molder Core Systems

http://www.plasticsnews.com/article/20130129/NEWS/130129911/whirlpool-files-breach-of-contract-suit-against-ohio-molder-core#

Whirlpool files lawsuit against supplier

http://www.marionstar.com/article/20130131/NEWS01/301310027/Whirlpool-files-lawsuit-against-supplier?nclick_check=1

[madville]

4. You mean there was more to the story

Like a legitimate reason to void a contract.

[Warpy]

5. OK, that explains why Wells Fargo is taking the heat

for not floating them enough to stay in business and pay the help.

I've run shoestring businesses and knowing which bill to pay and who can wait is a good 90% of the battle.

I guess Core management never figured that part out.

[Katashi_itto]

6. Zero sympathy. Its obvious Core wasnt doing it's part.

[JustABozoOnThisBus]

7. Still, sympathy for the 295

... who did their jobs and still lost their jobs.

No sympathy for the 5 who caused the failure and caused the loss of 300 jobs.

(the numbers above were pulled out of thin air, just a guess, no link)

[Katashi_itto]

8. Yep, I agree, I spoke poorly, the workers were not to blame

[jdadd]

9. The plastics industry is highly competitive....

I worked in plastics for 7 years. The molds belong to the customer, they can find another injection molder, Move the molds, and be back up and running pretty quickly....Core systems had allready closed their Mount Gilead, Ohio plant on January 29...
This was just the final gasp...My last job was with Carlisle Engineering Products, Crestline, Ohio Division. We went "belly up" after the slowdown of GM, Truck and Buss division...Management went out beating the bushes for more jobs, but it was too little, too late...