OpenGate Capital

The report details a pattern of acquisitions by OpenGate Capital that resulted in the closure of at least five companies and the loss of over 1,300 U.S. jobs. It examines specific cases including HUFCOR, Golden Guernsey Dairy, Fusion Paperboard, Hamilton Scientific, PennySaver, and Pacific Crest Transformers, alleging that the firm extracted fees and dividends while eroding the value of these businesses. The document highlights legal disputes over unpaid wages, lack of worker notice, and allegations of 'cash stripping' and 'looting' by bankruptcy trustees.

• OpenGate Capital has a documented history of acquiring viable businesses and subsequently driving them into bankruptcy or closure, resulting in more than 1,300 U.S. workers losing their jobs across at least five companies in less than four years.
• In the case of HUFCOR, OpenGate announced in June 2021 that it would close the Janesville, Wisconsin factory and move operations to Mexico, permanently laying off 166 workers.
• Golden Guernsey Dairy was shut down in January 2013 just 16 months after acquisition, leaving 100 workers jobless without advance notice. A bankruptcy trustee alleged the firm made "no net investment" and that the company's value was "consistently eroded."
• Fusion Paperboard was closed in 2014, resulting in 145 layoffs, despite a 2013 loan from the state of Connecticut conditioned on the company staying for 10 years and hiring 20 additional workers.
• Hamilton Scientific was abruptly shut down in 2015, costing 270 people their jobs. A bankruptcy trustee alleged OpenGate collected $1.6 million in "management fees" in December 2014 while the company was insolvent.
• The bankruptcy trustee for PennySaver alleged that OpenGate engaged in a strategy of "cash stripping," including paying itself a $320,000 "acquisition fee" and a $1 million annual "management fee," and transferring $2 million from a land sale to itself as a "distribution."
• Pacific Crest Transformers, an electrical equipment company in Oregon, was shut down in November 2017, resulting in 110 employees losing their jobs, shortly after the firm had claimed the business was doing "exceedingly well."

APA

Private Equity Stakeholder Project (2021). OpenGate Capital. https://pestakeholder.org/wp-content/uploads/2021/07/AFR-PESP-OpenGateReport-071421.pdf

Chicago

Private Equity Stakeholder Project. OpenGate Capital. 2021. https://pestakeholder.org/wp-content/uploads/2021/07/AFR-PESP-OpenGateReport-071421.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=OpenGate Capital |date=July 2021 |url=https://pestakeholder.org/wp-content/uploads/2021/07/AFR-PESP-OpenGateReport-071421.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2021opengate, author = {{Private Equity Stakeholder Project}}, title = {{OpenGate Capital}}, institution = {Private Equity Stakeholder Project}, year = {2021}, month = jul, url = {https://pestakeholder.org/wp-content/uploads/2021/07/AFR-PESP-OpenGateReport-071421.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }