AP

Illinois investigating drugmaker Akorn’s abrupt closure

Feb 23, 2023, 5:18 PM | Updated: Feb 24, 2023, 7:26 am

CHICAGO (AP) — State labor officials are investigating an Illinois-based pharmaceutical company’s decision to abruptly close all of its operations, including its out-of-state locations in New Jersey, New York and Switzerland, and to lay off hundreds of workers with almost no warning.

Akorn Operating Co., which is based in the northeastern Illinois city of Gurnee, told its 400 workers Wednesday that it planned to file for bankruptcy and that they would be laid off within 24 hours, the Chicago Tribune reported.

CEO Douglas Boothe told employees in a video that the company’s leaders decided on the move after failing to find a buyer for the company.

“I realize this is a tremendous shock and it will take time to absorb the news and what it means to you, your colleagues and your families,” Boothe said in the video, which was first obtained by the Decatur Herald & Review.

A spokesperson for the Illinois Department of Labor said Thursday that the agency is investigating the situation because Akorn didn’t file the required 60-day notice of mass layoffs or plant closures until Wednesday.

Boothe said in his video that the company notified the U.S. Food and Drug Administration of the closure. The Tribune’s attempts to reach the company Thursday for additional comment were unsuccessful.

Akorn’s Illinois locations include its corporate headquarters in Gurnee as well as manufacturing and research facilities in the Chicago suburb of Vernon Hills and in Decatur, in central Illinois. The company also has locations in New Jersey, New York and Switzerland.

The company developed, manufactured and marketed a wide array of branded and generic prescription drugs, including eye drops, injectables, oral liquids, inhalants and nasal sprays, according to its website. It also developed drugs for animals.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Juanita Beach Kirkland...

Kathy McCormack and Nick Perry, The Associated Press

‘Tis the season for swimming and bacteria alerts in lakes, rivers

With summer about to start, many people flocking to their favorite swimming holes may also want to read up on bacteria warnings.

13 hours ago

Image: Members of the Makah Indian tribe paddle away from the rising sun as they head from Neah Bay...

Associated Press

Washington’s Makah Tribe clears major hurdle toward resuming traditional whale hunts

The U.S. granted the Makah Indian Tribe a long-sought waiver that helps clear the way for its first sanctioned whale hunts since 1999.

2 days ago

jerry west...

Tim Reynolds, The Associated Press

Jerry West, a 3-time Hall of Fame selection and the NBA logo, dies at 86

Jerry West, a three-time Basketball Hall of Fame inductee whose silhouette is considered to be the basis of the NBA logo, died Wednesday morning.

3 days ago

Photo: Construction vehicles are parked outside of the Station U & O building on Tuesday, June 11, ...

Haleluya Hadero, The Associated Press

Amazon adds $1.4B to affordable housing fund for regions where it has corporate offices

Amazon is adding $1.4B to a fund for building more affordable housing in regions where the company has major corporate offices.

4 days ago

hunter biden...

Randall Chase and the Associated Press

Hunter Biden convicted of all 3 felony charges in federal gun trial

Hunter Biden has been convicted of all three felony charges related to the purchase of a revolver in 2018, but no sentencing date was set.

4 days ago

Photo: A Bremerton man who made 20 "swatting" calls around the U.S. and in Canada, prompting real e...

Associated Press

Bremerton man sentenced for 20 ‘swatting’ calls of false threats in US, Canada

A Bremerton man who made 20 "swatting" calls around the U.S. and in Canada, prompting real emergency responses, has been sentenced.

5 days ago

Illinois investigating drugmaker Akorn’s abrupt closure