Pure Water Manufacturer Le-Nature's Impure Accounting Forces Bankruptcy and Layoffs
In the beginning of November, four creditors owed $1.4 million initiated an involuntary bankruptcy against Pennsylvania bottled water producer Le-Nature. Kroll Zolfo Cooper, appointed custodian for the company, discovered two sets of books and less than $1 million cash to offset $750 million in debt.
Lawyers for creditors and two bankruptcy judges agreed agreed to transfer the bankruptcy case from a Delaware bankruptcy court to the Federal bankruptcy court in Pittsburgh at the same time giving Kroll Zolfo Cooper custodial powers to run the company.
Just last week, the custodians announced they did not believe the company could emerge from bankruptcy. Kroll Zolfo Cooper recently terminated 85 employees in Phoenix, Arizona and furloughed 238 employees in Latrobe, Pennsylvania.