The newly hired chief executive officer of Fix-Corp International Inc. is promoting a back-to-basics approach for rescuing the plastics recycler from Chapter 11 bankruptcy proceedings.
Mark Hershhorn, a 49-year-old business consultant who replaced Mark Fixler as the company's top executive April 23, said Fix-Corp should focus on recycling plastic resins for manufacturers rather than producing its signature plastic pallet — dubbed the Power Pal 2000.
In addition, Fix-Corp probably will close its Beachwood, Ohio, headquarters and consolidate its administrative operations in Heath, Ohio, where Fix-Corp owns a plastics recycling plant.
``This is a very good company that's been chasing a few too many ideas,'' Hershhorn said. ``Our goal is to focus on our core [recycling resin] until we can get back on our feet.''
The Beachwood headquarters costs $40,000 a month to operate and does little more than issue news releases, Hershhorn said. He said he also plans to sell or lease about 7 vacant acres of Fix-Corp's 10-acre plot of land in Heath, near Columbus.
The pallet business has lost its appeal mainly because the pallets have not been selling, Hershhorn said. Fix-Corp has more than 100,000 pallets — originally priced at $18 each — lying unsold at the company's plants in Heath and North Miami, Fla.
``It doesn't make much sense to continue making a product when you don't have prospective buyers; this is not the Hula-Hoop business,'' said Hershhorn, who was once president, CEO and chairman of National Media Corp., a publicly traded television programming company based in Los Angeles.
Publicly held Fix-Corp's decision in February to file for Chapter 11 bankruptcy protection did not help pallet sales, he said.
``You have be a consistent supplier or companies won't want to deal with you,'' said Hershhorn, who was hired by Fix-Corp's board to run the company along with two turnaround experts from his Philadelphia-based management consulting firm, Hershhorn & Trichon LLC.