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Weekly Ads Newsletter PennySaver Suddenly Shuts Down
The newsletter had been in business for 50 years. (Photo by Lisa S. via Shutterstock)
PennySaver—that newsletter full of ads, classifieds and coupons you probably find stuffed in your mailbox each week—just closed up shop. If you're someone who considers the weekly PennySaver an annoying waste of paper, then you're in luck. The Brea-based company has shut down, according to the L.A. Times. The bad news is that the sudden closure means hundreds just unexpectedly lost their jobs.
Employees said they were informed on Friday afternoon that the company was done, effective as of that instant. The employees weren't given a reason. One woman who elected to remain anonymous told the Times, "They said, 'That's it. We're done. We're closing. Everybody pack up your things and leave."
Employees also said they weren't given any guidance as to how to continue their healthcare, and they weren't even issued their last checks.
According to a statement from PennySaver CEO Ronald Myers, a lender's sudden decision to stop funding the company led to the closure. Myers said that they empathize with their employees and are looking at other options, "including ongoing discussions with a potential buyer and working with our lender to re-secure the line of capital to continue operations."
OpenGate Capital, an L.A.-based investment firm that acquired PennySaver in 2013, gave no reason or statement other than to forward Myers' statement along.
Attorney Richard McCune told CBS LA that he's looking into whether the company did anything illegal by failing to provide its employees with more notice.
"Employees for a larger organization like this have the right to get 60 days notice before a layoff and these employees were at their desks working at 4:30 on Friday and suddenly told they're no longer working," McClune said.
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Prior to its closing, PennySaver was sent to 11 million people each week and had been in business for 50 years.
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