Core Systems in Mt. Gilead closes its doors
By Randa Wagner — updated 01/29/13 11:11 a.m. -
A Mt. Gilead company is no longer in business, as of Monday morning.
Officials at Core Systems, LLC at 420 Douglas Street called an emergency meeting Sunday night at 7 p.m., and Monday morning, all 79 employees were out of a job, according to Sundie Brown of Job and Family Services.
“I spoke with Pam (Morrison) at Core Enterprises and they are closing their doors,” Brown said at the Community Services meeting Monday at noon. “They have one or two (employees) that will work a couple days this week.”
“Core was blindsided by this,” said Ron Fenstermaker, Operations Manager at Core’s headquarters in Painesville, Ohio. “No hint — nothing; they laid it on us last week and it’s been fast and furious ever since.”
A Breach of Contract suit against Core Systems LLC was filed by the Whirlpool Corporation in the Cleveland Office of Ohio Northern District Court last Thursday.
“What I can say is Whirlpool has made a decision to exit Core from their supply base,” Fenstermaker stated Monday afternoon. “It was a surprise to Core — it was not in our plans or discussions to be removed from the supply base.”
On their website, Core Systems says they have been a major supplier of plastic components to the large and small appliance industry for more than 25 years, manufacturing parts for laundry, dishwasher, range, refrigeration, freezer and air conditioner applications. They have been supplying parts for the Marion Whirlpool, who specializes in laundry and kitchen appliances.
Fenstermaker noted the Mt. Gilead facility is a Core facility that supplied Whirlpool only. Due to the legal case, he would not elaborate on the reasons behind the suit.
A spokesperson for Whirlpool’s World Headquarters in Benton Harbor, MI issued this statement yesterday: Whirlpool Corporation can confirm that, after several months of discussions, it has decided to end its business relationship with Core Systems, a Painesville, Ohio-based plastics supplier. Whirlpool Corporation continually evaluates and monitors its supply base and makes adjustments to ensure it can consistently, and without interruptions, deliver best cost and quality to our customers.
“It’s tragic,” said Pat Davies, “We don’t have that many jobs in the area. It’s a sign of the times.”
Monday morning, a Core employee told a Job and Family Services employee they may not be paid for the previous week’s work.
“I’ve spoken with a state unemployment person and another from Workforce Investment Act (WIA),” Brown said, “and we’re going to have Core email a list of employees and their [contact information] and we will be in contact with them.” She said JFS will help instruct the employees on how to apply online to obtain unemployment packages. Employees can also contact JFS and give their contact numbers. CYT is hiring and has been filed and been approved for funding through the new Ohio Incumbent Workforce Training Voucher Program. Contact Stephanie Weber at CYT for details — 419–864-8777 ext. 6344.
“These are hard, economic times,” said Davies. “This is a very sad time for Morrow County.”