Sen. Bob Casey asks FTC to stop the shutdown of Washington County glass factory

Madaleine Rubin / Pittsburgh Post-Gazette

Sen. Bob Casey on Friday urged federal officials to act quickly and block the imminent shutdown of a Washington County glass factory.

In a letter to Federal Trade Commission Chair Lina Khan, Sen. Casey called on the Commission and Department of Justice to take action and investigate Centre Lane Partners, the private equity firm in control of the Charleroi factory. The closure would be a shock to the Mon Valley and result in about 250 lost jobs by March.

“I urge you to take whatever action necessary — including filing for preliminary injunctive relief — to block this plant closure pending the completion of an investigation into the matter,” the letter reads.

On Sept. 5, Anchor Hocking — affiliates of Centre Lane Partners, and operators of the Charleroi plant — internally announced plans to close the 132-year old factory and move all services to another plant in Lancaster, Ohio. Anchor Hocking notified the Pennsylvania Department of Labor and Industry of plans to close the factory by Feb. 28 in a Worker Adjustment and Retraining Notification (WARN) Notice filed Oct. 15.

According to the notice, the plant’s 270 employees will be let go in waves, with the first round of layoffs beginning on Dec. 9 and impacting over half of all workers.

Anchor Hocking and Centre Lane Partners could not be immediately reached for comment.

In the letter, Sen. Casey questions the decision to shut down the plant, transactions of Centre Lane Partners and the broader impact of the factory’s closure.

The Federal Trade Commission confirmed receipt of the letter, but declined to comment.

Instant Brands previously owned the Charleroi plant, but filed for bankruptcy in June 2023. The company gained permission to sell its appliances and housewares businesses to Centre Lane Partners, including the Pyrex brand, the glassware manufactured in Charleroi.

While the appliances transaction went through, the sale of the housewares business — priced at $228 million — was denied regulatory approval. Months later, Instant Brands’ housewares division emerged from bankruptcy reorganized and under the control of its prior lenders, including Centre Lane Partners.

According to Sen. Casey’s letter, Centre Lane acquired a chunk of the company that included Pyrex, one of its largest brands. They purchased the remainder of the company less than two weeks later.

Sen. Casey’s letter claims Centre Lane then transferred ownership of the housewares brand to Anchor Hocking — for just a third of the price it was valued at during the bankruptcy proceedings. Mr. Casey questions that drastic price drop. The Senator also asks whether it’s legal for a company to make an acquisition that was previously denied under new terms without notifying the Federal Trade Commission.

According to the letter, it remains unclear whether that transfer of ownership gave Anchor Hocking control of the Pyrex brand — the glassware manufactured in Charleroi.

Over the last decade, Centre Lane Partners has acquired multiple kitchen and houseware brands, with ownership divided among its affiliates.

The private equity firm gained equity in the Oneida Group, tableware makers, in 2018, and acquired Lenox Corporation, dinnerware manufacturers, in 2021. Its portfolio includes several other houseware brands.

“Centre Lane’s increasing market share in the kitchenware industry raise some broader antitrust questions,” Sen. Casey’s letter reads, “but none more so than the glassware market.”

Sen. Casey’s letter was sent alongside the release of a report from his office that details Centre Lane Partners’ actions leading up to the announcement of the Charleroi plant’s shutdown.

The report also delves into the deep entanglement of private equity firms and the glassware industry. In the last 30 years, major U.S. glassmakers have filed for bankruptcy eight times, according to the report. In at least five of those cases, companies were owned by private equity firms, the report claims.

The Federal Trade Commission recently held a briefing regarding the factory’s closure with Sen. Casey and Oregon Sen. Ron Wyden following a joint request from the lawmakers last month, Senate Finance Committee spokesperson Taylor Harvey confirmed.

“Senator Wyden and Senator Casey are working alongside FTC to get to the bottom of this issue on behalf of the families in Pennsylvania that will be harmed by this sudden closure,” Mr. Harvey said.

Meanwhile, union leadership at the factory said they have been communicating with Sen. Casey’s office daily for weeks.

United Steelworkers Local 53-G vice president Daniele Byrne said she was notified Friday morning that the disassembly and transfer of equipment in the factory will begin as early as Oct. 28.

“It’s very important to get this investigation done on the fast track because if they start ripping these presses out, we’re going to lose employees and we won’t be able to complete orders,” Ms. Byrne said.

Since the plant’s closure was announced, 40 employees have already quit or been laid off, according to Ms. Byrne. That includes the factory’s safety director, head of production and multiple engineers, plant employees said.

Meanwhile, effects bargaining between the union and Anchor Hocking is ongoing, and union leadership toured the factory in Lancaster on Wednesday. The company has said some jobs there will be available for union employees.

A task force in Charleroi that includes borough council members, county commissioners, Sen. Casey’s office and other local officials are continuing to meet and fight the shutdown.

“I think this is our best shot, and I’m very hopeful for a full investigation to push back against corporate greed,” Borough Council president Kristin Hopkins-Calcek said.

“That’s our full intention — to show these private equity firms that we won’t stand for their shady dealings when it affects real people.”