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. Andrew Nikou Founder, Chief Executive Officer OpenGate Capital 10250 Constellation Boulevard, 30th Floor 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. and prioritize people, not private equity profits. His parents left their native Tehran before the Iranian Revolution and relocated to Canada, later moving with Nikou to California when he was four years old. 2:17-cv-04360-SB-E ("Underlying Lawsuit") under Private Equity Liability Insurance Policy No. 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. Why is Frank McCourt really pushing it? 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. Not the case? Contact the writer: 714-796-2286 or lwilliams@ocregister.com. In too many cases with private equity, big firms acquire businesses and squeeze them for cash, routinely causing bankruptcies. I did NOT send that email [releasing the escrow fund].. 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. Working at OpenGate Capital | Glassdoor OpenGate Capital Acquires Diversified Commodity and Specialty Chemical 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. Around the same time, it was engaged in negotiations to be acquired by another company. 2019 - janv. In December 2014, OpenGate Capital hired Realization Services, an East Coast company specializing in turnaround management. On Jan. 5, 2013, employees who worked the early morning shift, starting between 3 and 5 a.m., were asked to leave and the doors were locked with no prior notice to employees, McCarthy said. Several lawsuits had been filed claiming OpenGate and did not follow proper protocol under the WARN Act when firing hundreds of employees from both PennySaver and Hamilton Scientific. OpenGate is not facing any lawsuits for lack of notification with regard to the mills closure. In October 2012, OpenGate Capital bought the laboratory workstations business of Thermo Fisher Scientific, a maker of laboratory furniture. Opengate said gang members brandished weapons to intimidate employees at the facility and parked their cars and tractor-trailers filled with unknown cargo there. It would. 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. 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. OpenGate Capital is talking to limited partners about launching its next flagship, which could target up to $850 million, sources told Buyouts. Power Partners Inc., the first investment completed in OpenGate's first fund, was realized in November 2019 through the sale to Pioneer Transformers, a portfolio company of Mill Point Partners. Its website says its businesses generate annual revenue of about $3 billion, making it a small player. [22] The deal was the fifth platform investment from OpenGate's debut fund. Not meeting those goals or maintaining those levels would result in a default regardless of whether loan payments were made. In 2010, Nikou was named a Top Dealmaker of 2010 by Mergers & Acquisitions magazine. In early 2014, Fusion signed a six-year contract with the union representing its employees. A decision by Wisconsins Department of Workforce Development said Golden Guernsey employees never got compensation for accrued vacation and wages, or for the 60 days that correspond with the required notice period. Ive been doing this over three decades. Andrew Nikou is the Founder and Chief Executive Officer of OpenGate Capital, a Los Angeles-based firm with offices in Paris, France. Founded in 1979, Chemsolv is a diversified distributor offering more than 1,000 chemicals including solvents, plasticizers, coolants . [8] In 2004, he left Platinum Equity and moved back to Los Angeles to start his own global investment firm. Only logged in subscribers of this site will be able to access the shared article. The closure of PennySaver only reaffirmed the Connecticut state senators opinion of OpenGate. And employees became increasingly worried when PennySavers CEO, vice president of finance and the vice president of human resources all quit, Buckley said. You should only be asked to sign in once. Don't have an account? Lauren moved back to the states in 2011 and now lives in Long Beach. OpenGate Capital is a global private equity firm headquartered in Los Angeles, California and Paris, France that focuses on the acquisition and optimization of underperforming businesses in the lower middle market throughout North America and Europe. More than two years after the dairy closed, with bankruptcy proceedings still unfolding, the Storm family hasnt seen the $23,000 they estimate they are owed for the lack of notice and unpaid vacation days. "OpenGate buys Cascades recycled box makers," Los Angeles Business, 6-14-2011. You always pay your employees. Thermo Fisher, the world's largest maker of laboratory equipment and scientific instruments, agreed to acquire Life Technologies Inc. A fully integrated team of origination, investment and operations professionals. Employees who started work later arrived to find the facility locked. Andrew Nikou Email & Phone Number - OpenGate Ca.. | ZoomInfo [20] As of August 2018, OpenGate's first fund had completed nine platform investments, five of which had closed in 2016. Nikou, its founder, is a board member at the Hammer Museum and, until recently, at the Museum of Contemporary Art. Experience: Mr. Moazami is a Technology industry Senior Advisor to OpenGate Capital. OpenGate Capital Completes Acquisition of ScioTeq and TREALITY from OpenGate Capital - Darien Group They had received no notice that the magazine would be shuttered. The Hamilton shutdown was the result of a dispute in which the landlord of its main plant in Texas moved to evict the firm, imperiling the business, according to an OpenGate spokesman. OpenGate Capital Group LLC et al v. Thermo Fisher Scientific Inc et al They think its a big joke. 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. Banks dont do this. Every major bank in the U.S. covers the payrolls.. Kasoff said that the bank explicitly forced the default when, on the last day of operations, a bank representative phoned to say that the bank would not advance the $400,000 needed to fund corporate payrolls unless PennySaver agreed to shut down and dismiss all employees not needed to wind down the company. The list is updated frequently, so check . Later that year, Nikou led OpenGate Capital's bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding. OpenGate Capital is part of the Finance industry, and located in California, United States. Elaine Buckley, a former senior vice president for sales and a 35-year employee, said she believes the company was in liquidation mode for months. Acquiring and creating transformative value in the lowertomiddle market across North America and Europe. Newkirk was fully involved in the scam, prosecutors allege. 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. In 2001, Nikou began his career in private equity at Platinum Equity. This is ClassAction.org's current list of open lawsuits and investigations. Our tax dollars should make life better not go to waste on bloated military contracts and Pentagon boondoggles. (Photo provided by Americans for Financial Reform). For ScioTeq, 2020 was again a record . 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. According to Opengate Capital, the company withheld important documents . Withdrawing funding is a last minute resort, Capital One spokesman Michael Bulger said in an emailed statement. Confronted with this looming loss, Hufcor employees, Janesville residents and CWA union organizers have rallied against OpenGates greedy and exploitative practices. Fahn points to OpenGates acquisition of TV Guide, auto part manufacturer Gabriel, and Europe-based companies NorPaper, Benvic, Kotkamills, and Fleurus Presse as a some of OpenGates successful turnarounds. OpenGate Capital is a Los Angeles based private equity firm that specializes in acquiring and optimizing lower-to-middle market businesses across North America and Europe. 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. of the Connecticut boxboard company Fusion Paperboard, and nearly. We have just sent you an email so you can verify your account. (Reuters) - Opengate Capital Group LLC filed a lawsuit on Friday alleging that laboratory equipment maker Thermo Fisher Scientific Inc. sold it a Mexican plant last year without revealing that a drug cartel was operating there. Wrong. LOS ANGELES - June 1, 2022 - OpenGate Capital, a global private equity firm, announced that it has exited its investment in EverZinc, a global provider of specialty zinc materials, through a sale to U.S. Zinc, a portfolio company of Aterian Investment Partners. Stanziale alleged that the dairy was insolvent in December 2011, more than a year before the hurried shutdown. That would be a hard argument to make, he said. Register now to read this article and more for free. OpenGate Capital : Portfolio Company, Hufcor Inc., Names Mr. Koben This spring, 166 workers in Janesville, Wisconsin awoke to a nightmare. Newkirks lawyer, Jonathan Harris, claims Newkirk is no more than a victim just one of many duped by con man Darden Jr. At least two civil suits were filed by lenders who forked over money because they thought they were lending it to Darden Sr. only to learn otherwise when it was too late. Kasoff, who also handled the Connecticut plant for OpenGate, said Fusion acted properly in all respects in selling some assets to a competitor and said it retains ownership of its real estate and other assets, which it will sell to pay off creditors. In 2019, OpenGate acquired the German content-management platform CoreMedia. 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. This post was guest authored by Elisa McCartin. Paris Area, France. The firm faced six different lawsuits after abruptly laying off Pennysaver employees in the middle of a work day without giving workers their final paychecks for several days or compensation for unused vacation days. In addition, OpenGate was to get 10 percent in Maxim plus a $500,000-a-year annual consulting fee, according to testimony. 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. The younger Darden pleaded guilty to his own Maxim-related fraud charges in November and is cooperating with prosecutors in their pursuit of Newkirk. Opengate did not specify what damages it was seeking. But not all OpenGate deals have worked out. All rights reserved. [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. OpenGate, which acquired PennySaver in 2013, specializes in buying units of larger companies and reselling them. 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. OpenGate Capital - Recent News & Activity 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. 9JANESVILLE The labor union that represents workers at Janesville's Hufcor factory is now pressuring Hufcor owner OpenGate Capital with a shame campaign that's playing out in Los Angeles, OpenGate's corporate home city. But the fact is that weve lost those jobs and nothing has replaced them.. OpenGate Capital Fully Exits Investment in EverZinc 14 at 5-6.) [10], In 2008, Nikou negotiated the deal for OpenGate Capital to acquire TV Guide for $1 and $50 million in assumed liabilities from owner Rovi Corporation (previously Macrovision). We need a new push to pass this law. OpenGate Capital has acquired Umicore Zinc Chemicals Opengate Capital Grp. LLC v. Thermo Fisher Scientific Inc. (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. 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. OTHER FILED BY OPENGATE CAPITAL LLC ON 07/15/2015 [+] Read More [-] Read Less; 07/16/2015. 19, Ex. PennySaver workers are suing OpenGate in state and federal court, alleging that the company failed to provide adequate notice about the shutdown. 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. 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. OpenGate Capital, a global private equity firm, has acquired Umicore Zinc Chemicals, a global leader in the production of specialty zinc chemicals, from parent company Umicore. Headquartered in Los Angeles, California, . Description. Click here. Six months after the purchase, OpenGate sued Thermo Fisher, saying the company had concealed the fact that the Reynosa, Mexico, facility was under seige by the Gulf cartel, whose senior members brandished weapons at company employees and parked tractor trailers and cars at the facility. Our six-week newsletter will help you make the right decision for you and your property. About OpenGate Capital. Industry: Investment & Asset Management. Among those companies was Hamilton Scientific, the enterprise allegedly overrun by drug cartel members. Thermo Fisher Scientific - Wikipedia Language links are at the top of the page across from the title. [28][29], Past closures also included PennySaver USA and Hamilton Scientific. Emerging managers like OpenGate are seeking reception with limited partners, who generally have been happy to stick with their established relationships in uncertain markets. 1:13-cv-01475 in the Delaware District Court. OpenGate's professionals possess the . It agreed to provide $3.1 million in . Employees of other OpenGate companies have suffered similar fates. Jul. OpenGate nevertheless was lured back in as a short-term lender to Darden. OpenGate Capital, LLC, et al., Central District of California, Case No. ), Concertgoer lets out a loud full body orgasm while L.A. Phil plays Tchaikovskys 5th, 8 best interview questions to land a top job, Bank rates are up. 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. 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. OpenGate notes that its business model is to take chances on faltering companies, and that carries inherent risks. 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. But in some cases, as with PennySaver, external circumstances frustrate our ability to have our investments realize their full potential.. No tags have been applied so far. 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. If we wanted the employees to be paid, we had to immediately terminate all the employees other than those that were needed to liquidate, Kasoff said. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); ACCE Action, Action Center on Race and the Economy, AFL-CIO, American Federation of State, County, and Municipal Employees, American Federation of Teachers, Agenda Project, American Family Voices, American Federation of Government Employees, American Federation of Teachers, Americans for Financial Reform, American Postal Workers Union, Beneficial State Foundation, Campaign for Americas Future, California Reinvestment Coalition, Catholics in Alliance, Center for Popular Democracy Action, Communications Workers of America, Consumer Action, Consumers Union, Courage Campaign, Center for Popular Democracy, CREDO, Communications Workers of America, Daily Kos, Demand Progress, Democracy for America, Economic Policy Institute, Franciscan Action Network, Friends of the Earth US, Groundwork Collaborative, Hedge Clippers, Institute for Policy Studies, Jubilee USA, Main Street Alliance, Media Voices for Children, MO Jobs with Justice, MomsRising, MoveOn, The Nation, National Education Association, NETWORK Lobby for Catholic Social Justice, New York Communities for Change, Citizen Action of New York (CANY), The Other 98%, Patriotic Millionaires, People for the American Way, Peoples Action, Presente.org, Public Citizen, RootStrikers, SEIU, Strong Economy for All Coalition, UNITE HERE, United Auto Workers, United Food and Commercial Workers, Working Families Party, Social Activity 2017 | All Rights Reserved, The Save the Post Office Coalition on Closed Postal Board Meeting Aug 5-6, 2021, We Stand with the Asian American and Pacific Islander Community, Biden FY24 Budget Puts Working People Over Wall Street, Pandemic Profiteering: Private Equity Gets Bigger in Every Way, The House Always Wins if You Own the House: Private Equity Housing Billionaires during COVID-19, The Megalomaniac Supervising the Maniac: Schwarzman, Trump, and Anti-Democracy, The Save the Post Office Coalition reacts to Louis DeJoys 10 year plan, How Tax Laws Paved The Freeway for Wall Street Giants, Remembering Tulsas Black Wall Street on Juneteenth, Private Equity and Megabanks Continue to Crush the Housing Market for the Middle Class and People of Color, Erasing Black People From American History: Why We Need Popular Education, The Save the Post Office Coalition Reaction to USPS Announcement on Electric Vehicles.