Concord-based Alevo filing for bankruptcy, laying off hundreds - | WBTV Charlotte

Concord-based Alevo filing for bankruptcy, laying off hundreds

(David Whisenant | WBTV) (David Whisenant | WBTV)
CONCORD, N.C. (WBTV) -

Concord-based battery energy storage provider Alevo is filing for bankruptcy, the company posted on their website Friday.

"Alevo USA, Inc. and Alevo Manufacturing, Inc. will file for Chapter 11 bankruptcy today and close operations at their facility in Concord, NC," the company posted on their website. Sources say 200 people are being laid off. 

Alevo says they have significant production challenges and this insufficient revenue.

"The Company has been actively seeking new funding sources to finance its operations and growth strategies. Unfortunately, despite best efforts, the funding has not been realized in time," the release said. 

Alevo CFO Peter Heintzelman says the decision was driven by challenges of bringing a new technology into commercial production. He calls the decision to file for bankruptcy "a difficult, but necessary decision."

"It is a sad day for our dedicated employees and partners, as well as for the promise of Alevo’s technology," Heintzelman said.

Below is the full release posted on Alevo.com:

Alevo USA, Inc. and Alevo Manufacturing, Inc. will file for Chapter 11 bankruptcy today and close operations at their facility in Concord, NC. Despite demonstrating the advantages of its groundbreaking battery technology, Alevo has significant production challenges and thus insufficient revenue.  The Company has been actively seeking new funding sources to finance its operations and growth strategies. Unfortunately, despite best efforts, the funding has not been realized in time.

“Filing for Chapter 11 bankruptcy is a difficult, but necessary decision”, said Peter Heintzelman, Alevo CFO, “this decision was driven by the formidable challenges of bringing a new technology into commercial production and lacking the financial wherewithal to continue on through repeated manufacturing delays. It is a sad day for our dedicated employees and partners, as well as for the promise of Alevo’s technology.”

In July, Alevo was holding three job fairs to find workers.

The company wanted to fill over 200 manufacturing jobs at the Concord plant, located in what used to be the Philip Morris plant, on Concord Pkwy S.

Concord Mayor Scott Padgett released a statement on the situation.

I was extremely disappointed to receive notice that Alevo is ceasing operations today. My most immediate concern is for the 290 individuals and their families that will be affected by a loss of employment. They took a chance on a promising future with Alevo, and now have to start back at square one. Fortunately, we have an increasingly diversified economy in Concord that offers many current and future employment opportunities.

Alevo offered an exciting vision for a portion of the former Philip Morris property they leased, which ultimately did not come to reality. The property ownership of the entire tract of land on both sides of Concord Parkway remains financially stable. The City, County, and Cabarrus Economic Development Corporation will continue working with the owners to find the right use for the most unique development opportunity in this part of the United States.

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