Beverage maker Joriki Beverages announced that it has closed its bottling facility in Pittston, Pennsylvania. Local station Newswatch 16 informed that the company notified its 229 affected workers by email of the immediate shutdown on New Year’s Eve.

Joriki stated in the WARN notice that it could not provide the traditional 60-day notice. The company explained that it had been working for several months on a going concern transaction that it believed would maintain operations at the Pittston plant and avoid job losses.

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The company added that it received financial support from a major customer and senior lenders while it was conducting a transaction and believed that issuing a notice of Notice 60 days before the closing date would have compromised its plans to find a buyer or retain the financing

Joriki revealed that an agreement with a potential buyer came days before Christmas. The company described the failed deal as “sudden, dramatic and unexpected” and led to a financial crisis it could not address without closing the Pittston facility.

Federal law requires employers who are planning mass layoffs or plant closings to notify affected employees at least 60 days in advance of the action.

However, action 16 cited the Pennsylvania Department of Labor and Industry, which stated that employers can claim an exemption from the law if specific conditions apply, including “unforeseen business circumstances or a faltering business.”

The “faltering company” exception it applies to companies that sought capital or business when 60 days’ notice would have been required and to those that felt that providing the required notice would have prevented them from obtaining the necessary capital or business.

Still, Joriki must prove to the US Department of Labor that he qualifies for the exception. Industrial Media did not receive a response to its request for comment from Joriki.

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