CEDAR RAPIDS, Iowa (AP) — Victor Plastics Inc. announced Tuesday it has filed for bankruptcy and will begin laying off its 420 employees.
The company, based in North Liberty, said it expects limited production to continue through the first week of May.
''Our firm has worked strenuously to avoid bankruptcy,'' Victor Plastics CEO Mike Tryon said.
''We understand how tough this is on our employees, their families, and our customers. We have a plan in place to ensure and orderly wind-down.''
Tryon blamed the company's demise on the loss of key customers and the rising costs of raw materials such as resin.
The bankruptcy filing was made in the U.S. Bankruptcy Court in Minnesota by Victor's parent company, VMI Acquisitions.
Victor Plastics was founded in 1983 in Victor and later expanded with plants in Kalona and Marion. The Marion operation was moved to North Liberty in 1995, and the company moved its headquarters to North Liberty in 2006. Victor Plastics sold its Kalona Plastics operation last year to Engineered Plastics Components.