Le-Nature's granted court OK to shut down Phoenix plant

By Caroline Salls

Pittsburgh, Nov. 9 - Le-Nature's, Inc. obtained court approval to cease operation of its Phoenix facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

According to the motion, the company needs to shut down the Phoenix facility "to have any hope of creating a viable business around the Latrobe facility."

Le-Nature's said the Phoenix facility is burdened with more than $2.75 million in monthly lease obligations, or $32.5 million annually.

The company's combined net sales for 2005, which includes products produced at both the Phoenix facility and the Latrobe, Pa., facility, is estimated at about $32 million.

In addition, Le-Nature's said it believes that the current market demand for its products can be completely satisfied by production out of the Latrobe facility.

In light of the company's severe liquidity crisis, Le-Nature's said it has no choice but to shut down operations at the Phoenix facility immediately.

The court also gave Le-Nature's permission to terminate the 67 hourly employees and 18 salaried employees currently working at the Phoenix facility.

Le-Nature's, a Latrobe, Pa., manufacturer of flavored bottled water and other beverages, had an involuntary Chapter 7 bankruptcy case filed against it on Nov. 1. The case was converted to Chapter 11 on Nov. 3. The case number is 06-25454.

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