ARCA sees influx of inquiries after Jaco shuts down

Minneapolis-based Appliance Recycling Centers of America Inc. (ARCA) has announced that it has received and is responding to a significant influx of inquiries relating to appliance replacement and recycling programs after the unexpected closure of Jaco Environmental Inc., a Mill Creek, Washington-based appliance recycler.

The inquiries from potential customers and industry members are related to the appointment of a receiver for Jaco Environmental by the Superior Court of Washington for King County, says ARCA.  According to the court’s order appointing the receiver, which was entered Nov. 18, 2015, “[Jaco]’s business operations are no longer viable as a going concern and the Receiver’s authority under this Order is therefore strictly limited to conducting an orderly liquidation of a failed business, not a continuation of [Jaco]’s ordinary course business operations.”

According to The Seattle Times, Jaco Environmental laid off 154 local employees the week of Thanksgiving “in an abrupt closure stemming from financial difficulties, a move that’s also hampering fridge-recycling programs across the country.” The article says according to a notice filed with state regulators, the layoffs took place at Jaco’s Bothell headquarters and in Everett, where it runs a recycling facility.

Jaco Environmental offered services in 28 states, according to its website, www.jacoinc.net. The company says it recycled more than 400,000 units each year.

ARCA says the termination of Jaco’s business operations presents opportunities for the company to obtain additional appliance recycling and replacement contracts with utility companies, retailers and original equipment manufacturers (OEMs) around the country. However, ARCA says it recognizes it is too early to determine whether and the extent to which it will obtain such contracts. To date, ARCA has obtained one short-term recycling contract with a utility company in Washington that was scheduled to be awarded to Jaco, according to the company. ARCA says it intends to actively pursue other opportunities for additional appliance recycling and replacement contracts.

The company notes that it has been in contact with Mark Welch, the receiver appointed to Jaco, and is working with him to acquire certain Jaco assets.

“It is our understanding that the process to acquire assets from Jaco has only begun and that it will take time to work through the approvals in the courts,” ARCA says.

The company says it has received a considerable number of calls and inquiries from former Jaco employees and subcontractors. ARACA says it considers it to be a high priority to get as many of the more than 150 Washington workers back to work.

“This is a very exciting time for us as we remain committed to our current customers, employees and all the industry participants who have been affected by this surprising development,” says Jack Cameron, ARCA’s president and CEO.  “We look forward to bringing our best-in-class program offerings and commitment to quality services to the ever-changing marketplace.”

A spokesman for the Snohomish County Public Utility District told The Seattle Times that the agency ended its relationship with Jaco in fall of2014 after working with the company for 10 years in a program to prod customers to get rid of old fridges.

The article says the program was robust in the first couple of years, when Jaco picked up more than 10,000 fridges annually, but demand decreased over time, said spokesman Neil Neroutsos.

ARCA says its three business components are positioned in the industry to work together to provide a full array of appliance-related services. ARCA Advanced Processing LLC employs advanced technology to refine traditional appliance recycling techniques to achieve revenue-generating and environmental benefits. ARCA also is the exclusive North American distributor for UNTHA Recycling Technology (URT), one of the world’s leading manufacturers of technologically advanced refrigerator recycling systems and recycling facilities for electrical household appliances and electronic scrap.

ARCA’s regional centers process appliances at end of life to remove environmentally damaging substances and produce material byproducts for recycling for utilities in the U.S. and Canada. Eighteen company-owned stores under the name ApplianceSmart Inc.^® sell new appliances directly to consumers and provide Energy Star® options for energy efficiency appliance replacement programs.