Sentenced to $500,000 fine and bankruptcy, Red River sticks to ‘top-notch’ service

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FORT WAYNE, Ind. (WANE) – Nearly a week after filing for bankruptcy, Red River Waste Solutions said the company remained committed to providing its “usual top-notch service.”

The Texas-based waste management company filed for Chapter 11 bankruptcy on Thursday. In the filing, the family-owned business, which serves 310,000 households in 5 states including Fort Wayne, blamed the COVID-19 pandemic. 19, a credit agreement and “operational challenges” for his financial difficulties.

On Wednesday, Red River sent WANE 15 the following statement:

“Red River Waste Solutions is an integral part of the communities it serves and continues (and commits) to provide waste removal services in all such communities under the protection of bankruptcy law. Like many other businesses, Red River Waste Solutions has been impacted by the challenges of COVID-19 and has struggled to overcome the challenges caused by this pandemic. These challenges include a historic labor shortage and increased waste volumes due to a pandemic. These factors have significantly increased our labor costs, the stress of our excellent employees and our rolling stock, which has resulted in challenges with our current lender, although we have maintained our required excellent customer service levels. by our customers.

Jim Calandra, Director of Restructuring, Red River Waste Solutions

According to the city, Red River averaged 262 failed garbage collections per week from 2021 through August. This number represents a significant increase from the 101 missed trashes per week since 2020. However, in 2019 the average number of trashes per week was 299 and 706 in 2018.

As of Wednesday afternoon, 31 solid waste service requests on garbage collections have been filed in the last 24 hours. Of these 31 requests, three have been resolved so far.

City spokesman John Perlich said Fort Wayne has collected more than $500,000 in fines from Red River over the past four years. He said the money goes back to the Solid Waste Fund which runs the Solid Waste Department.

Red River’s statement went on to say:

“At the end of last week, we reached an impasse with our lender, forcing us to seek Chapter 11 bankruptcy protection. Red River Waste Solutions plans to use this Chapter 11 bankruptcy to reorganize its debts, eliminating inherited debt, providing the company with needed cash and a strengthened balance sheet, and preserving/enhancing its ability to serve its customers. As Red River moves as quickly as possible through the restructuring process, it expects its day-to-day operations, commitment to customers and first-class service to continue as usual.

Jim Calandra, Director of Restructuring, Red River Waste Solutions

A trash can waits to be collected along Copper Hill Run on Wednesday October 20, 2021.

Several Fort Wayne residents who live on Copper Hill Run told WANE 15 on Wednesday that “upscale” isn’t the first phrase that comes to mind when they think of the Red River service.

“It’s just kind of a coincidence,” Sharon Peckham said. “You never know if it’s going to come Friday, which is our day, or a week from Friday, or Sunday, or Saturday.”

Residents of Copper Hill Run said a common problem on the road is that some homes will have their trash picked up, while others will not. Peckham’s garbage was picked up on Friday. However, Nicholas Sutherland, who lives opposite her, said he left his cans outside for nearly a week.

“It’s frustrating to see everyone’s trash picked up,” Sutherland said. “We tried to call, we tried to email someone. They just said he should be picked up any day now, but I just don’t get it.

Sutherland added that this problem reoccurs almost every week.

At Tuesday night’s city council meeting, members were told that garbage collection would continue and that they would begin looking for other companies to take over the city’s contract in the event of a Red River closure.

Red River did not attend the meeting due to a “scheduling conflict”.

Missed waste collections can be reported here or by dialing 311.

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