DECATUR, Ill. (WAND) — Multiple employees told WAND News that mass layoffs were happening at Akorn Pharmaceuticals in Decatur.
WAND News saw dozens of cars leaving the Akorn Industrial location at 150 S. Wyckles Rd. Wednesday morning.
WAND also spoke with an employee leaving the 1222 W. Grand Ave. location who said she was informed at a meeting Wednesday morning that "everyone" was being let go.
One former employee shares he's unsure on how to move forward.
"I'm not sure and I know a lot of other people are in the same boat. And I know we're going to do or best to help each other out through this situation. And it's tough for all of the other people that have worked with them we are all like family whether we got along with each other or not we stuck through it to the end," said Ben, an employee of 6 years at Akorn.
WAND has reached out to Akorn's corporate office multiple times. So far, there has not been a response.
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In a leaked video of the virtual conference call to employees, the company announced that all employees on the call would be laid off effective immediately.
The video showed President and CEO of Akorn Douglas Boothe delivering the news stating, "The company did not receive an appropriate bid that would address outstanding liabilities, including outstanding debt. The company owners just informed us they will not provide the additional financing required to continue to run the business and search for alternative options.
"Their decision leaves us the board and ownership and management team with no other alternatives then to conclude the sales process and to initiate bankruptcy proceedings. This was not expected. The filing is planned for later this week. It'll be a Chapter 7 bankruptcy."
In an email obtained by WAND News, that was sent to Akorn employees, management wrote, "In connection with the Chapter 7 filling, the Company must shutdown all operations and terminate all of its employees.
Effective immediately, we are closing all U.S. sites and laying off all employees as of Thursday February 23, 2023. These layoffs will be permanent."
In 2020 WAND reported Akorn Inc. was sold to its existing lenders after receiving approval from the United States Bankruptcy Court for the District of Delaware.
The generic pharmaceuticals manufacturer filed for Chapter 11 bankruptcy protection in late May 2020 in an attempt to complete a sale in court.
Officials said the sale would allow the company to "move beyond the Chapter 11 process."
WAND spoke to Mayor Julie Moore Wolfe who said the following regarding the surprise layoffs,
"This is a pretty big hit to our community, on the upside we have a lot of available jobs. Now, I've got to tell you, this couldn't have been handled more poorly. We have so many resources that are available to help had we only been given that opportunity.
"So, I mean, I'm in contact right now with the state of Illinois, Workforce Development, United Way, with basically rally our partners and rallying our resources to say what can we do. It would have been helpful if they would have filed a notice with the State, which is a WARN notice if you have 75 or more full-time employees. That is something you are supposed to do. Akorn didn't do it. I'm not faulting local management, I don't think they had a clue, but it is. This is not the way you do this. It's wrong."
WAND is working to learn more about the situation and will update this story as more becomes available.
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