https://resource-recycling.com/e-scrap/2015/11/05/processor-with-broad-hopes-now-mired-in-bankruptcy-and-lawsuits/
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A review of Zloop’s bankruptcy filings by E-Scrap News shows creditors both inside and outside the recycling industry claim the company owes them money. Its top 20 unsecured creditors together have claims totaling more than $25 million against Zloop.
Founded by Boston and Robert LaBarge in 2012, Zloop provides e-scrap processing, on-site and off-site audited data destruction services and plastics recovery services, according to the company’s website. Zloop landed a $7 million contract to recycle millions of Keurig coffee machines, court records show. It had also acquired a location in the Reno, Nev. area for materials processing, and it had at one time sold 15 franchises in deals worth millions of dollars.
Now, the company is looking to sell its Nevada land, sell and lease back its Hickory, N.C. headquarters and sell several 53-foot trailers, according to bankruptcy documents. And the deal to recycle Keurig machines ended in 2014 when an investor sued Zloop, The Wall Street Journal reported in September.
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Beyond the equipment lawsuits, one investor has sued Zloop seeking nearly $80 million. In 2012 and 2013, Zloop sold three franchises in North Carolina, eight in Texas, three in Louisiana and one in West Virginia, according to an affidavit filed by Boston. All of the Texas and Louisiana franchises were purchased by Kendall Garrett Mosing. Mosing is a member of the family controlling the oil services company Frank’s International, according to the Lafayette, La.-based publication IND Monthly. He has sued seeking nearly $80 million, claiming $26.5 million in actual damages with the rest making up penalties under the Louisiana Unfair Trade Practices Act.
Kyle Busch Motorsports (KBM) is also suing Zloop and Boston’s son, Justin Boston, alleging they missed $650,000 in payments as part of their $3.2 million annual deal that allowed Justin Boston to compete as a KBM driver, ESPN has reported. Under a racing deal signed by Zloop, Justin Boston, Justin Boston Racing LLC and KBM, Zloop paid KBM more than $1.5 million in early 2014 for a vehicle and pit crew so Justin Boston could drive in NASCAR Camping World Truck Series races, court documents showed. Zloop, the sponsor, then stopped paying KBM, which currently claims it’s owed more than $4 million.
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