Recycling Firm CarbonLite Files for Bankruptcy
PET recycling firm CarbonLite and a subsidiary today filed for bankruptcy, indicating the company plans to reorganize and continue operating. A company leader said market strife and COVID-19 impacts led to the decision.
Los Angeles-based CarbonLite on March 8 filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The filing covers all of CarbonLite’s operations, which include facilities in California, Texas, and Pennsylvania. It also covers PinnPACK Packaging, a subsidiary that produces thermoforms.
CarbonLite operates recycling facilities that bring in PET bales from the deposit and curbside sources. The company processes the PET and sells RPET pellets to major bottling firms, including Nestlé Waters North America and Niagara Bottling. The company has grown significantly in recent years, opening the Pennsylvania facility in early 2020 and planning a fourth plant in Florida.
In a news release, CarbonLite attributed the bankruptcy to “pressures directly related to the coronavirus pandemic.”
