Thursday, June 1, 2017

Mark Line Industries Closes Permanently and Faces Class Action Lawsuit

Mark Line Industries, an Indiana commercial modular building manufacturer has closed its plant in Elkhart County. In a notice to the state, Mark Line Industries LLC says the closure came after unsuccessful attempts to negotiate a lease extension for the building in Bristol, leaving 73 employees out of work.


Mark Line says most of the layoffs took place Monday, with a few staying on to take care of the final wind-down activities at the facility. The company says it thought a deal was in place in April to extend the lease agreement, but the building's owner informed the company it would soon be evicted.

"Realizing at that point that no deal with the landlord was possible, we began looking for a new facility to locate to," Mark Line said in its notice to the state. "Unfortunately, we have been unable to timely secure an alternative facility. To make matters worse, our senior lender swept our bank account and has not allowed us to use any cash or receivables to pay expenses. From mid-April on, payroll has been funded by cash infusions from ownership. However, we were informed that Mark Line's owners will not continue to fund payroll.

The closure is expected to be permanent. Mark Line also has locations in Pennsylvania and North Carolina.

A class action lawsuit has been filed against Mark Line Industries after the Bristol, Indiana manufacturer closed its doors for good May 28, 2017. Their plant in Ephrata, PA is also closed and shuttered.

It states several employees are suing the company because they were not given enough notice before being put out of their jobs.

In a release from Mark Line, it states:

Due to significant and recent unforeseeable business circumstances and Mark Line’s unsuccessful efforts to negotiate a lease extension or obtain additional capital investments necessary to sustain a workforce while it relocates facilities, Mark Line made the decision to permanently cease business operations effective May 22, 2017.

The company also claims it could not provide advanced notice due to the quick loss of a lease.

The employees suing are seeking payment.


Matt Banes said...

The way this article reads it seems like there has got to be another side to this story. Was there much of a back log of orders for modular buildings? If so, whats going to take place next to fulfill those contracts?

Anonymous said...

Mosaic Capital which owned Mark Line took the customers deposits and ran. Over 3m in deposits. I guess it was Cheeper to steal than tell the truth. They clearly violated the Warn act and the excuse is pathetic. The Pa plant had an auction last week and Indiana is this week. Another example of how bad management put another black eye on the industry. The story is about venture capital coming in and taking what they can quickly and leaving the carnage behind. Similar to the Excel catastrophe.

Unknown said...

We are saddened to hear of this happening. I am currently employed with Palomar Modular in DeSoto, TX (just South of Dallas). If anyone is searching for employment and interested in relocating we are certainly willing to consider! We are currently hiring for production, Production Supervisor and Business Development.

Anonymous said...

Great, I've bought a used Mark Line modular building, and now I cannot find necessary architectural designs needed. The whole corporation has closed shop.

Unknown said...

Is there anyway to get a buildings specs? Bought one of their buildings that was previously used as a doctors office. Need to find out about load bearing wall? Thanks