Akorn fallout: Local businesses impacted by unexpected closure

DECATUR, Ill. (WAND) - The fallout continues for those impacted by the unexpected closure of Akorn Pharmaceuticals in Decatur.

Last week, the Illinois-based pharmaceutical company abruptly closed all of its operations and planned to file for bankruptcy. Employees who showed up to work on Wednesday, February 22 were shocked to find out they were out of a job and would not receive any severance.

>>> Employees' reaction to Akorn closure

The closure not only impacted hundreds of employees but also impacted local businesses that were contracted with the company. One of those businesses is Taylor Made Landscaping, Inc. in Decatur.

"I mean, there is the shock of the loss, but there was no surprise as far as Akorn going bankrupt," said CEO Taylor Deetz.

Taylor Made Landscaping is a full-service landscaping company that designs and builds landscaping, as well as groundskeeping and snow removal. Deetz told WAND News he started contracting with Akorn in 2017 when the company asked for a landscaping design and installation at its Grand Avenue location.

After that installation, Taylor Made Landscaping was contracted to do groundskeeping at Akorn's Grand and Wyckles locations, as well as landscaping maintenance and snow/leaf removal.

"We were there weekly doing groundskeeping duties, like mowing to leaf removal to shrub trimming to trash pick up," shared Deetz.

When Akorn announced its permanent closure on February 22, Deetz said he was not given a heads-up and was never contacted by the company.

"They were on our books for upcoming jobs and we were in the process of renewing our groundskeeping contract for the season which is upcoming."

On Thursday, Feb. 23, the Illinois Department of Labor said the agency is investigating the unexpected closure. Akorn didn't file the 60-day notice required by companies seeking to perform mass layoffs or plant closures.

>>> Class action lawsuit filed against Akorn

Senator Doris Turner said her reaction, like many, was shocked. She plans to move forward with doing what's right for those impacted.

"It's an impact that's a wide range far beyond just those 400 employees. We are doing everything we can to ensure that we address it on each front."

Payment from commercial vendors is similar throughout the industry. Deetz said, his company does the service for the month, like groundskeeping, and then a bill is provided to the company. For Akorn, specifically, Deetz said a bill is provided to the company and 30 to 60 days later they are paid for the job.

Deetz said there are services Akorn has not paid for.

"There are fall groundskeeping services and snow removal services that have not been paid for, about 3 months' worth of services, so a 3rd invoice is getting ready to go out next week. So, about 90 days worth of billing."

After the unexpected closure, Deetz discovered Akorn accounted for almost 10% of Taylor Made Landscaping, Inc.'s gross revenue.

"We have weathered a lot of storms, but there are small contractors out there. I haven't spoken to every vendor involved with Akorn, but small businesses were hurt badly by this."

Deetz said he has contacted his attorney and had him look into if there are options available to be compensated.

>>> Resources available for former Akorn employees