Recycling Industries Exec Finds Political Success

Recycling Industries Inc., a one-time consolidator of scrap metal companies based in Englewood, Colo., crashed into bankruptcy and liquidation in 1999 after only a few years in existence.

The company’s former chairman and CEO, however, has stayed in Colorado and is likely headed to the Statehouse in Denver as a state representative.

Thomas J. Wiens, of Sedalia, Colo., is the Republican nominee from his district and faces only token opposition from a Libertarian party candidate, according to a news report in the Denver Post.

Wiens’ business record has been called into question, as have lawsuits against him from former workers and tax liens that have been filed in the past against companies he managed.

Many in the scrap recycling industry are familiar with the failure of Recycling Industries Inc., which purchased several family owned-scrap companies and then failed to manage them through the late 1990s down cycle in the scrap market. Recycling Industries used borrowed funds to make most of its purchases, and was eventually overwhelmed by debt.

The company filed for bankruptcy in 1999 and has subsequently seen most of its assets auctioned off by GE Capital and other creditors.

As noted in the Denver Post article, the company’s misfortunes seemed to have little impact on Wiens himself, who in 1996 built a 9,000 sq. ft. home on his 1,000-acre ranch.

The Recycling Industries failure has not been the only question mark on Wiens’ record as a business owner. InteleCom Corp., a cellular phone company Wiens headed, filed for bankruptcy in 1985, and also caused Wiens to file for personal bankruptcy that year.

The Post report also notes that since the demise of Recycling Industries, Wiens has started up two more companies in the energy and telephone wiring segments that have also faced challenges.

Intelliready, the phone and cable wiring firm, has been sued by its own CEO, who contends that Wiens has shifted operating funds away from the company. And Reliable Power Systems, a maker of energy backup products, has closed its Colorado office, though it continues to operate in other states, according to the Post.