Containerware Inc., a producer of vacuum thermoformed parts, ceased operations in December 2024, turning over the company's customer list, tooling and current orders to Global Thermoforming Inc.
President Scott Francken saw the Tollesun, Ariz.-based company drop below the break-even point and was not able to recover.
"I couldn't keep dumping money into it. I was, I was out of all my reserves. I tried to keep it going for as long as I could," Francken said.
A few years ago, the company was having trouble hiring people, there was a year-and-a-half long search for more employees. Francken was getting no responses from applicants that replied, or if he hired an employee, they would end up not showing up.
Being low on employees caused Containerware to fall behind on shipping orders and resulted in customers leaving because of the increased lead times.
"It started in the whole COVID mess, because at that point in time, people were getting paid more to stay on unemployment," Francken said. "They were earning quite a bit of money to not work. And so, why would they work?"
Francken's parents started Containerware in 1980 and he bought it from them in 2004.
"I'm sad to lose the business," Francken said. "I was very sad to have to tell my mom that the business that they put all of their blood, sweat and tears into is gone."
In November 2024, the facility's rent was going to be doubled or more with a new lease. After learning of this increase, Francken started looking to sell the company.
The deal between Containerware and Global Thermforming of Racine, Wis., is based on how much of Containerware's product sells, along with an upfront downpayment. Any of the tooling or equipment that Global Thermoforming didn't buy went to auction.
"All of my customers that are still buying stuff are now buying from them. Hopefully. I really hope," Francken said. "If my customers all left and didn't buy anything else, then I would be in big trouble."