MINNEAPOLIS, Dec. 2, 2015 /PRNewswire/ -- Appliance Recycling
Centers of America, Inc. (Nasdaq: ARCI), a leading provider of
appliance retailing and recycling services, today announced that it
has received and is responding to a significant influx of inquiries
from potential customers and industry members relating to appliance
replacement and recycling programs. The inquiries are related
to the appointment of a receiver for JACO Environmental, Inc.
("JACO") by the Superior Court of Washington for King County. According to
the Court's order appointing the receiver, which was entered on
November 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."
The Company believes the winding up 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
around the country, and that such additional contracts, if
obtained, could have a material favorable impact on the
Company. However, it is too early to determine whether and
the extent to which the Company will obtain such contracts.
To date, the Company has obtained one short-term recycling contract
with a utility company in the State of
Washington that was scheduled to be awarded to JACO.
The Company intends to actively pursue other opportunities for
additional appliance recycling and replacement contracts.
The Company has been in contact with Mark Welch, the Receiver appointed to JACO, and
are 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.
The Company has received a considerable number of calls and
inquiries from former JACO employees and subcontractors who are
looking for a fresh start. We consider it to be a high
priority to get as many of these people 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," commented
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."
About ARCA
ARCA's three business components are uniquely 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 optimal revenue-generating and environmental
benefits. ARCA (www.ARCAInc.com) is also 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.®
(www.ApplianceSmart.com) sell new appliances directly
to consumers and provide affordable ENERGY STAR® options
for energy efficiency appliance replacement programs.
This press release contains statements that are
forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995, including statements regarding
ARCA's future success. These forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from the statements made, including the risks
associated with general economic conditions, competition in the
retail and recycling industries and regulatory risks. Other factors
that could cause operating and financial results to differ are
described in ARCA's periodic reports filed with the Securities and
Exchange Commission. Other risks may be detailed from time to time
in reports to be filed with the SEC.
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SOURCE Appliance Recycling Centers of America, Inc.