RCR’s former School Street facility, now operated by Mathew Appelget’s MM&R.
A local recycling company that at its peak operated four sites around the region has been shut down and put into bankruptcy.
River City Recycling, founded in 2012 to run scrap yards that take in and process copper, aluminum, steel, junk cars and other items, filed Chapter 7 bankruptcy in Delaware late last month.
Mathew Appelget, who previously worked as president and CEO of River City Recycling, said the changes at RCR came about after the company’s private equity owner, Black Eagle Partners, decided to exit its investment in the face of falling commodities prices.
Appelget said RCR was shut down in July and its four scrap yards in the area were closed.
Mathew Appelget
In an interview onsite on Monday, Appelget said he is now operating RCR’s former Northside facility at 1207 School Street through MM&R, a separate recycling firm he created and of which he is sole owner.
Appelget, who signed the bankruptcy documents for RCR and also owns the Pig & Pearl restaurant on West Broad Street, said the Chapter 7 filing of the RCR entity was done in order to finalize and close out its affairs.
He said MM&R has no affiliation to the previous entities or its owners. The company operates a similar business to RCR, taking in scrap metal from walkup consumers and commercial customers, and then sorts, cleans and sells the material to other recyclers who break it down into new material.
“We’re here doing most of the same things, trying to make a go of it,” he said of the new company, adding that it’s a tough market due to declining global commodities prices. He said the prices he receives for materials are about half of what they were a year ago. Copper, for example, in recent years, traded for $4 a pound and is now hovering around $2.
“It’s indicative literally across the board for almost all metals,” he said.
RCR’s revenue hit $15 million in 2014, bankruptcy filings show. That figure dropped to $3.6 million last year.
RCR is represented in its Chapter 7 process by attorney Jeffrey Waxman of the Morris James law firm in Delaware. Waxman said the company has no comment on the bankruptcy.
RCR’s former Manchester facility, which closed in 2014.
The company’s bankruptcy filings list about $50,000 in assets and more than $21 million in liabilities. The bulk of that debt – about $15 million – is secured and owed to River City Recycling Holdings, which has an address that traces back to Black Eagle Partners’ headquarters in Michigan.
Messages and emails left with principals of Black Eagle Partners were not returned by press time.
The company’s remaining $5 million in unsecured debt is owed to more than 100 creditors including $18,000 in taxes owed to the City of Richmond, $61,000 to the IRS, $35,000 to the School Street property’s landlord in back rent, as well as various vendors, finance companies and recycling companies.
Attorney Don Beskrone has been assigned as trustee of the case to oversee its liquidation. He initially filed a lawsuit against Appelget and MM&R, claiming they didn’t have the right to occupy the School Street scrap yard and sought a temporary restraining order against them.
Beskrone did not return a call for comment. Attorneys representing him in the case also did not respond to messages and emails.
Appelget said on Tuesday that the issue over his use of the School Street site has been resolved with the trustee.
RCR’s former School Street facility, now operated by Mathew Appelget’s MM&R.
A local recycling company that at its peak operated four sites around the region has been shut down and put into bankruptcy.
River City Recycling, founded in 2012 to run scrap yards that take in and process copper, aluminum, steel, junk cars and other items, filed Chapter 7 bankruptcy in Delaware late last month.
Mathew Appelget, who previously worked as president and CEO of River City Recycling, said the changes at RCR came about after the company’s private equity owner, Black Eagle Partners, decided to exit its investment in the face of falling commodities prices.
Appelget said RCR was shut down in July and its four scrap yards in the area were closed.
Mathew Appelget
In an interview onsite on Monday, Appelget said he is now operating RCR’s former Northside facility at 1207 School Street through MM&R, a separate recycling firm he created and of which he is sole owner.
Appelget, who signed the bankruptcy documents for RCR and also owns the Pig & Pearl restaurant on West Broad Street, said the Chapter 7 filing of the RCR entity was done in order to finalize and close out its affairs.
He said MM&R has no affiliation to the previous entities or its owners. The company operates a similar business to RCR, taking in scrap metal from walkup consumers and commercial customers, and then sorts, cleans and sells the material to other recyclers who break it down into new material.
“We’re here doing most of the same things, trying to make a go of it,” he said of the new company, adding that it’s a tough market due to declining global commodities prices. He said the prices he receives for materials are about half of what they were a year ago. Copper, for example, in recent years, traded for $4 a pound and is now hovering around $2.
“It’s indicative literally across the board for almost all metals,” he said.
RCR’s revenue hit $15 million in 2014, bankruptcy filings show. That figure dropped to $3.6 million last year.
RCR is represented in its Chapter 7 process by attorney Jeffrey Waxman of the Morris James law firm in Delaware. Waxman said the company has no comment on the bankruptcy.
RCR’s former Manchester facility, which closed in 2014.
The company’s bankruptcy filings list about $50,000 in assets and more than $21 million in liabilities. The bulk of that debt – about $15 million – is secured and owed to River City Recycling Holdings, which has an address that traces back to Black Eagle Partners’ headquarters in Michigan.
Messages and emails left with principals of Black Eagle Partners were not returned by press time.
The company’s remaining $5 million in unsecured debt is owed to more than 100 creditors including $18,000 in taxes owed to the City of Richmond, $61,000 to the IRS, $35,000 to the School Street property’s landlord in back rent, as well as various vendors, finance companies and recycling companies.
Attorney Don Beskrone has been assigned as trustee of the case to oversee its liquidation. He initially filed a lawsuit against Appelget and MM&R, claiming they didn’t have the right to occupy the School Street scrap yard and sought a temporary restraining order against them.
Beskrone did not return a call for comment. Attorneys representing him in the case also did not respond to messages and emails.
Appelget said on Tuesday that the issue over his use of the School Street site has been resolved with the trustee.