COLUMBUS, Ohio (WCMH) -- Sen. Bernie Moreno (R-Ohio) sent a scathing letter to the CEOs of Pixelle Specialty Solutions after the decision to shut down a Chillicothe paper mill, leaving more than 800 people without jobs.
Moreno called the move a “selfish business decision and corporate greed," blasting the company for putting "profits over people."
The CEO of Pixelle, Ross Bushnell, called it an “extremely difficult decision” to shut down, and said "we value our Chillicothe team and the contributions they have made.” Watch previous coverage in the player above.
Ultimately, Bushell, whose company acquired the paper mill in 2022, said the step was “necessary” for “long-term strategic goals.”
Franklin County deputy accused of fleeing officer at speeds over 100 mphMoreno noted that the mill survived several historic moments, including the Great Depression, a global pandemic and the “transition to the digital age.”
"Yet somehow your collective greed and/or inept business choices managed to close the doors to a paper mill that survived" those moments, Moreno said. He wrote that “as a businessman myself, the facts just do not add up.”
“We are confident that this decision, while difficult, allows us to better align our resources and focus on future growth opportunities that pair with our operational goals and competitive solutions,” Bushnell said in a statement announcing the closure. “Our focus remains on delivering high-quality paper products while ensuring a responsible transition for our workforce and operations in Chillicothe.”
The company will phase out its closure, with the first employees scheduled to be let go in mid-June. Moreno said he can only conclude that the company bought the business “with the sole intention of shutting it down” to “line executives’ pockets.”
Now, Moreno said he “demand(s)” answers to twelve questions.
How is shutting down the Chillicothe Paper Mill aligning with Pixelle and H.I.G.'s long-term business goals when just three years ago you were publicly exlaiming about a phase of growth? What changed? How much did Pixelle executives personally profit from the acquisition? Did Pixelle share any of the sale proceeds from the acquisition with your employees? When did you make the decision to close down the Chillicothe Paper Mill? Why did H.I.G. purchase Pixelle if you were just going to shut down one of its assets? Did you think about the employees that have dedicated their entire lives to working at the Chillicothe Paper Mill when you chose to prioritize profit over people? How was the acquisition financed? How much debt did you use to capitalize the deal? Who was your lender? What were the terms of the loan? Provide my office with the financial information, analysis, and the model that you utlizied to make this decision. Provide my officer with Pixelle's annual audited financial statements for the last five years, including the balance sheet, profit and loss statements, and statements of cash flow.Read the full letter below
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