DGI Services Cites ‘Industrial Sabotage’ as Reason for Ceasing Operations

SWEDESBORO, NJ—Dec. 12, 2011—Subsequent to the announcement last Monday that IWCO Direct had acquired “certain assets” of DGI Services, reports began cropping up late Friday about a letter DGI sent to employees saying the company was winding down operations as a result of “industrial sabotage.” Some 600 employees across five facilities are said to be subject to a layoff that will be completed by Jan. 31, 2012.

According to a video report by CBS Philly, authorities said someone broke into the DGI’s facility in Swedesboro and damaged computer equipment and a digital printing press that “was so rare there are only four others like it in the world.” It said that the damage was estimated at $30 million.

In its account, the Gloucester County Times reproduced this portion of the letter: “In particular, one of our facilities was recently subject to an act of industrial sabotage which resulted in irreparable damage to our ability to continue our operations. The perpetrators of this unlawful entry vandalized certain equipment integral to the operation of our business beyond immediate repair and obtained access to our IT room.”

The paper also quoted Debora Haskel, IWCO’s marketing director, as saying the assets her company had acquired consisted of equipment. “We did not acquire the buildings or the business.”

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Comments
  • Doubting Thomas

    I’m surprised anyone can get very close to the building, since this story smells to high heaven. I want to see a digital press that is so rare that there aren’t a couple hundred just like it, much less 4.

  • Smooty

    Something is digitally fishey!
    "Come on Man", tell the truth!
    Your selling and didn’t want to inform your employees!
    And the press…you’re kidding right!
    But i gotta hand it to you…30 Million is a nice round numfer! BS

  • Theyspeakalllies

    Something fishy is going on, the shop was broken into after it was ordered to shut down for the weekend for the first time in 9 months! This isn’t the first time this guy has done this. Just Google Dean Topolinski and see he knows what he is doing, he did it in Canada and now he is here destroying our lives! The story they are giving are lies and hopefully the truth is found!

  • soon2BformerEmployee

    The very first weekend that the building is closed on the weekend in a long time, which is the very first weekend the press area was closed, was the weekend after they changed to press operator schedule so that no one was working in the entire building. that particular weekend someone happens to break in and destroy it? What is worse is, they announced two days after the building is closing that the employees will not be receiving and monetary compensation, not even from NJWARN ACT because of the sabotage. It’s funny how they found a buyer so quick within 3 weeks of the break in. I’m sure the owner, who has a history of unethical practices, wanted to sell the assets but no one wanted this machine so he damages it, gets insurance money, and sells off the assets, and uses his own destruction as a loophole to not inform the employees of closing.

  • Lisa Morina

    Regardless of the circumstances, almost 600 individuals will shortly be unemployed. We are trying to contact officials but have not received return calls. If any of the postings below are from individuals employed by DGI, please contact the County Dept of Economic Development. We are trying to arrange post-employment career services for those impacted by the closure. 856-384-6930 or lwmorina@co.gloucester.nj.us

  • Ex-DG

    The thruth will come out eventually…Direct Group has been a house of cards for years, showing profits on paper but that’s it. These guys bought homes and cars with the $$$ they siphoned out of the place. Sucks…used to be a pretty good company…

  • FormerDirectGroupEmployee

    "The perpetrators(the people I hired to do it) of this unlawful entry vandalized certain equipment integral to the operation of our business beyond immediate repair and obtained access to our IT room"
    ” Some 600 employees across five facilities are said to be subject to a layoff that will be completed by Jan. 31, 2012.
    Not even close………
    As of Friday,12/16/2011,All employees have been let go!
    Just 11 days after official notice was given to the employees.

  • Mass Layoff

    Outten & Golden is investigating potential Worker Adjustment and Retraining Notification (WARN) violations in connection with the termination of DGI Services’ workforce without 60 days advance written notice as required by the federal, California and New Jersey WARN Acts. Under NJ and CA law, an unexpected shutdown is not a defense to WARN pay and benefits. For more information, http://www.warnlawyers.com

  • interested

    anything new on the DGI mess?

  • interested

    Anything new with the DGI mess