Zelenka Nursery: Nursery Closure Leaves 500 Jobless
Zelenka Nursery head says that bank group pulled out company money for liquidation Robert Gold and Nate Reens - Holland Sentinel - 01/06/2004
More than 500 workers at Zelenka Nursery in Grand Haven Township are out of work today, according to the company's president.
"Zelenka Nursery has ceased operations due to the decisions of its lenders," according to Richard H. Brolick, president of the nursery.
The company laid off almost all of its more than 500 workers Tuesday.
According to Brolick, a bank group withdrew all cash from the company's accounts for liquidation.
John Strazanac, a director of operations for Zelenka Nursery, located at 16127 Winans Road, said earlier in the day that the layoffs were due to "just some uncertainty in the market."
Brolick said the company never missed a bank payment of principal or interest and had enough cash flow to meet its obligations.
Zelenka is owned by Franklin Street Equity Partners of Chicago.
The nursery, according to the company's Web site, grows ornamental plants on 5,000 acres in West Michigan that are sent out to more than 5,400 retail garden center outlets in 42 states.
Much of the staff is made up of seasonal workers, but about 100 full-time workers were laid off too, Strazanac said.
Most of the 300 workers employed at facilities in Tennessee and North Carolina faced a similar fate Tuesday.
Workers were given hotline numbers where they could check this week whether they would be rehired.
A message posted at 11:15 p.m. Wednesday stated that "a limited number of people had been scheduled for irrigation and shipping work" today. Irrigation work
was also slated for Friday and Saturday.
"No other work is scheduled at this time but discussions with our lenders are scheduled" for today, the message stated.
Amelia Flores, a data entry seasonal worker at the Grand Haven nursery, said that news of the layoffs was not expected.
"We were in shock," Flores said Wednesday from her Holland apartment complex that Zelenka provides to many of its seasonal staff.
Flores said the company sent out an e-mail Tuesday afternoon to different departments about the layoffs. Various supervisors then gathered workers and told them to return home. Flores said other workers were laid off earlier in the day.
Flores, who travels annually room Texas with her husband to work at the nursery, said she remained uncertain about her future even after hearing reports that Zelenka was rehiring.
"This makes you think, 'Will there be work next year?'" she said.
Mary Kay Schoon, a program assistant with Ottawa County Michigan Works, said Wednesday that Zelenka workers have started filtering in to the unemployment center to seek benefits and employment assistance.
Schoon has no estimate on how many people may enter the office seeking help.
"They have quite a significant amount of migrant employees and a good number of year-round employees too," Schoon said. "It's too bad for the workers and it's too bad for the employer."
The company conducts about 90 percent of its business in March, April and May, with employment peaking at about 800 workers in April, Strazanac said. Seasonal work ends at the end of October, he said.
Schoon said the unemployment agency will help register all displaced employees and try to find them other jobs.
Schoon said some employees may head back to their permanent homes while others may stick around for apple season or other employment opportunities.
"We've had some come in already and we're working on registering them properly and helping them any way we can," Schoon said. "We have an agricultural service worker who helps guide migrant workers to jobs and we hope that we can place people who need help in new jobs."
Schoon said the closing has a much larger impact on the West Michigan economy.
"It has a huge impact on things any time you take 400 to 500 people or so working here and then they don't have jobs," she said. "They usually have a month or two left to spend in area stores. There's certainly a trickle down effect."
Kyle Moroney of the Grand Haven Tribune contributed to this report




