Allendale, Mich.-based injection molder Jimdi Plastics Inc., owned by Antara Systems LLC, filed for Chapter 11 protection from creditors on Feb. 22 citing the COVID-19 pandemic.
In documents filed with U.S. Bankruptcy Court in Grand Rapids, Mich., the company listed $2.1 million in assets and $4.3 million in liabilities.
The pandemic cut the company's sales by 70 percent, it said in court documents, and "forced a reduction in staff from 67 to 15, reduced shifts from six days a week at three shifts per day to four days a week at one shift per day."
The company received two PPP loans in 2020 for $480,980 and $457,500 respectively.
When Antara Systems purchased Jimdi Plastics in 2018, filings said, it "required operating capital to make repairs and hire knowledgeable staff."
At the time of the acquisition, Antara Systems received two U.S. Small Business Administration in the amounts of $350,000 and $2.4 million, respectively.
Jimdi ended 2019 with a $795,000 loss "due to the necessary purchases, repairs of equipment, educating team members, underpricing issues, and hiring knowledgeable team member leaders."
Jimdi did not immediately respond to request for comment by Plastics News.