Beskrone v. OpenGate Capital Grp., LLC (In re PennySaver U.S. Publ'g business closure in Janesville since the Great Recession. "They basically told us 'We don't want to get to . [20] As of August 2018, OpenGate's first fund had completed nine platform investments, five of which had closed in 2016. 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. during its first decade in business, has run exactly that playbook in Janesville since acquiring Hufcor in 2017. 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. In February, the PennySaver building on Orbiter Street in Brea was sold for $14 million, according to public records. close to . By continuing to use this site, closing this banner, or clicking "I Agree", you agree to the use of cookies. But Pawluk said things deteriorated soon after OpenGate Capital acquired Hufcor, a family-owned company founded in Janesville 120 years ago. LOS ANGELES, June 01, 2022 -- ( BUSINESS WIRE )-- OpenGate Capital, a global private equity firm, announced that it has exited its investment in EverZinc, a global provider of specialty zinc . OpenGate Capital Acquires Diversified Commodity and Specialty Chemical We are proud to have a history of successfully turning around these types of businesses, Fahn added. Hamilton Scientific would pay employees once it got its funding together, according to the April PE Hub article. Instead, he sits on numerous boards and hes even been in talks about a reality TV show built around his private equity business. Newkirk was fully involved in the scam, prosecutors allege. 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. Banks dont do this. Every major bank in the U.S. covers the payrolls.. Kasoff said that his sole focus after his company was brought in was on fixing PennySaver and that a shutdown was never contemplated until Capital One shut off credit without explanation. Investment Represents Strategy to Create European Aluminium Solutions Group. Employees of other OpenGate companies have suffered similar fates. But the fact is that weve lost those jobs and nothing has replaced them.. Esko Successfully Closes Sale of Kongsberg Business To OpenGate Capital Its the biggest business closure in Janesville since the Great Recession. He has a passion for people and a knack for recognizing what is needed to help businesses in . Wrong. Golden Guernsey owes the ex-employees that money, and it also owes $30,000 in penalties because it failed to notify the mayor of Waukesha, the town where Golden Guernsey was located, that mass layoffs were imminent, the state agency ruled. But those changes did not prepare workers for its sudden closure when, in the middle of the afternoon on a Friday, employees were asked to pack up and leave. In 2019, OpenGate acquired the German content-management platform CoreMedia. But there were no stocks because the elder Darden was never a part of the deal, it is alleged. Securities class action lawsuits are filed on behalf of a class of investors or a class of holders of a particular security. 19, Ex. Hufcor employees, Janesville residents, and union organizers have rallied against OpenGates greedy and exploitative practices. They cut salaries. [1] The firm is focused on the acquisition of lower to middle market businesses that are often privately owned, or non-core divisions of larger companies located around the world. I did NOT send that email [releasing the escrow fund].. Too often, private equity firms like OpenGate extract cash from the companies they acquire and walk away richer, regardless of what happens to workers and communities. Revenue: $1 to $5 billion (USD) Competitors: Unknown. Hufcor, a market-leading producer of accordion-style doors and mobile room partitions, was profitable when OpenGate bought it. Its not a good sign, obviously, Kasoff said of the default. In early 2014, Fusion signed a six-year contract with the union representing its employees. Confronted with this looming loss, Hufcor employees, Janesville residents and CWA union organizers have rallied against OpenGates greedy and exploitative practices. Vice President. The company was starting to be profitable. After decades of pro-corporate globalization, people numb to its effects might write . Thats the thing that bothers us most, McCarthy said. This spring, 166 workers in Janesville, Wisconsin awoke to a nightmare. [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 Capital Reviews: What Is It Like to Work At - Glassdoor Thermo Fisher was not immediately available for comment outside of normal U.S. business hours. [16], In 2012, through the firm's legacy, pre-fund investment process, OpenGate Capital acquired the Latin American operations of Getronics from the Dutch conglomerate, KPN. It was rough, but they didnt care. The employees say they didn't get money owed to them, including their final paychecks and vacation time. When PennySaver closed on May 22, it left 678 employees without a final paycheck or compensation for their accrued vacation days and it meant they had to scramble for health benefits. The lawsuits allege that a company or individual violated securities laws and are brought on behalf of the class. At OpenGate, we strive for a culture that promotes open communication and empowerment of fellow team members.. 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. Herb Titus, on what would have been his 20th anniversary with PennySaver, spent the afternoon protesting outside OpenGate Capital in Century City recently. The case status is Pending - Other Pending. 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. OpenGate Capital Completes Acquisition of ScioTeq and TREALITY from Fahn, speaking for OpenGate, said that the union wasnt privy to the sale because the sale wasnt final. Similarly, employees at Golden Guernsey learned the company was closing when they showed up to work only to find the doors locked. OpenGate Capital partners with companies to . 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 the laboratory furniture company Hamilton Scientific. 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 . It maintained operations during the worst of the pandemic and even. MILWAUKEE (January 11, 2022) - Chemsolv, Inc. ("Chemsolv"), a leading distributor of commodity and specialty chemicals based in Roanoke, VA, has been acquired by OpenGate Capital ("OpenGate"). Do Not Sell or Share My Personal Information, Musk said hed never settle an unjust legal case against him. Rapacious LA Vulture Capitalist Firm: Ruins Job, Communities for Profit OpenGate is a global private equity firm that acquires and . A link has been emailed to you - check your inbox. The acquisition financing was arranged via a unitranche by Deutsche Bank as . 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. She briefly lived in Santiago, Chile where she edited an online magazine and worked as a translator for doctors from Malaysia following Chile's 8.8 earthquake in 2010. Coupon mailing company PennySaver USA was in default on its main operating loan for five months before it abruptly shut down on the eve of the Memorial Day weekend, something few of its roughly 680 employees knew before they were put out of work. Ive been doing this over three decades. PennySaver workers are suing OpenGate in state and federal court, alleging that the company failed to provide adequate notice about the shutdown. 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 a history of buying companies only to close operations shortly thereafter, leaving communities across the country in the lurch. Heres what the numbers show. OpenGate Capital Group LLC et al v. . 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. OpenGate tried to buy Maxim in early 2013 but was outbid by Darden Media Group. 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. Most of my clients are in default. Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions. Then, their final checks bounced. OpenGate failed to give workers at Pennysaver and Golden Guernsey the 60 days notice of business closure that is required under U.S. labor law. 2:17-cv-04360-SB-E ("Underlying Lawsuit") under Private Equity Liability Insurance Policy No. Mr. Moazami is currently the Chairman of Astrea Acquisition Corp (NASDAQ: ASAX) and Vcinity [] (Photo provided by Americans for Financial Reform). Andrew Nikou is the founder and CEO of OpenGate Capital, a global private buyout firm. This isnt just another story about corporate globalization or pandemic upheaval. It agreed to provide $3.1 million in financing in November 2013 for five days. 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. 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 . It also said employees sought help from Thermo Fisher to address the cartel activity, but that security upgrade proposals were not implemented. They think its a big joke. His father, who majored in mathematics at a German university, worked at the Los Angeles Department of Water and Power. 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. 2 June 2015. ScioTeq, a market leader and established name in visualization solutions for the Air Traffic Control, Avionics and Defense markets, is entering a new era as a standalone company as the result of the acquisition by Private Equity firm OpenGate Capital as of 01 July 2021. It had been in business 50 years. 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. Before the deal even closed, executives at OpenGate met with PennySaver employees and touted their roughly 20 other acquisitions in a PowerPoint presentation obtained by the Register. OpenGate Capital : Portfolio Company, Hufcor Inc., Names Mr. Koben Andrew Nikou - Founder, CEO & Managing Partner - OpenGate Capital Later that year, Nikou led OpenGate Capital's bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding. Sign in to add some. 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. OpenGate is perhaps best known for its 2008 purchase of the print version of TV Guide for a nominal price plus assumed debt. PDF Case 2:17-cv-04360-RGK-E Document 40 Filed 09/26/17 Page 1 of 11 Page INTRODUCTION Before the Court is the Motion to Dismiss Pursuant to FRCP 12(b)(6) filed by OpenGate Capital Group, LLC, OpenGate Capital Management, LLC and PennySaver Investors, LLC's (collectively, "OpenGate"), which seeks to dismiss the Complaint filed by Don A. Beskrone, Chapter 7 Trustee for the estates of PennySaver USA Publishing, LLC, et al. In December 2014, while their lawsuit against Thenno Fisher was pending, the OpenGate and RoundRock entitles negotiated a sale-leaseback agreement for the . 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. A court filing by the trustee overseeing the bankruptcy proceedings said Golden Guernsey owed $1.5 million because it had violated state labor laws that require 60 days notice to employees of mass layoffs. About Andrew Nikou - Andrew Nikou MALLOY MITRA VS OPENGATE CAPITAL LLC | Court Records - UniCourt At their side are elected officials who know that the whole country needs tough measures to reform private equity. "OpenGate+Capital" | US Decisions | Law | CaseMine OpenGate is moving the plant to Mexico anyway. It said the once-popular magazine was losing money and is now profitable. Founder & Chief Executive Officer at OpenGate Capital . OpenGate is moving the plant to Mexico anyway. 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 . 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. It had about 100 workers, some of whom arrived at the plant one January morning to find the gates locked, according to state documents. A fully integrated team of origination, investment and operations professionals. . In December 2014, OpenGate Capital hired Realization Services, an East Coast company specializing in turnaround management. 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 . Class Action Lawsuit List 2023 Join Eligibility 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. 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. "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. [27], On January 5, 2013, Golden Guernsey ceased operations without notice in an alleged violation of the State of Wisconsin's mass layoff/shutdown regulations. What the fk is going on? Weinberg wrote in an email to Newkirk on Nov. 12 after learning his cash was gone, according to trial testimony. But in court papers, Hamilton denied any illegal conduct. In 2001, Nikou began his career in private equity at Platinum Equity. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. 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. 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. The closure of PennySaver only reaffirmed the Connecticut state senators opinion of OpenGate. A fully integrated team of origination, investment and operations professionals. On 09/21/2021 Finsa Portafolios, S A de C V, filed a Property - Personal Property Fraud lawsuit against OpenGate Capital, LLC,. Among them were a French childrens book publisher, a Finnish paper producer, the Nicole Farhi division of fashion firm French Connection and Models One Ltd., the modeling agency that has represented supermodels Bar Refaeli, Alessandra Ambrosio, Linda Evangelista and others. Andrew Nikou is the Founder & Chief Executive Officer at OpenGate Capital based in Los Angeles, California. One of those businesses, like PennySaver, filed for bankruptcy. On Friday May 21,2015 they fired all employees. Click OpenGate tried to buy Maxim in early 2013 but was outbid by Darden Media Group. "Nicole Farhi Buyer OpenGate Set to Announce Three More Deals," David Altaner, Bloomberg, 3-15-2010. Nikou has received recognition for his business achievements. Open Gate Capital aquired my company Pennysaver USA 1 1/2 years ago. [6] Nikou graduated from William Howard Taft Charter High School in Woodland Hills, California, where he was active in the Persian community. 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