Betting Big on Pandemic-era Expansion, Arizona Sanitary Wipes Maker Goes Bust Instead [View all]
The onset of a global health pandemic appeared like it would bode well for companies in the right industry, like Gilbert disinfectant wipes manufacturer GPMI Company but things didn't go to plan.
After a major expansion deal with an Israeli manufacturing partner went sour, the company was forced to cut its workforce in half.
This week, the company filed for Chapter 11 bankruptcy protection. That means the company makes a side deal with its secured creditors in exchange for its biggest debts to be restructured. A secured creditor, like a bank, has collateral if loans go into default.
Often during bankruptcy proceedings unsecured creditors — subcontractors of subcontractors and local small businesses — could get left holding lots of empty bags.
Read more: https://www.phoenixnewtimes.com/news/gpmi-disinfectant-wipes-maker-files-for-bankruptcy-laid-off-dozens-of-workers-12815415
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