Pactiv Evergreen execs sold over 50K shares before announcing devastating paper mill closure in NC small town
Paper mill at the heart of local economy and employs over 1,100 workers in Canton, North Carolina
Pactiv Evergreen sold off hundreds of thousands of dollars worth of shares before announcing the closure of the century-old paper mill at the heart of Canton, North Carolina.
Pactiv Evergreen, a product packaging company based in Lake Forest, Illinois, announced Monday that the historic plant is shutting down in the coming months. It employs 1,100 people and is considered a keystone of the local economy.
Evergreen Packaging, or the Canton Paper Mill, in Canton, North Carolina, is seen from Champion Drive on Sept. 21, 2020. (Asheville Citizen-Times)
It now appears executives with the company sold off more than 50,000 shares of stock before the closure was announced, according to SEC filings reported by Smoky Mountain News.
The executives' shares were sold on March 2 — and union representatives with Smokey Mountain Local 507 were reportedly told about the plans to close the paper mill by Pactiv Evergreen officials on March 6.
The shares were sold for $11.30 a share. The stock has since fallen to below $10 a share.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTVE | PACTIV EVERGREEN INC. | 15.53 | +0.27 | +1.77% |
FED'S RATE MOVES PUT MANUFACTURING SECTOR AT RISK
Chief Legal Officer Chandra Mitchell sold 5,613 shares for $63,426.90.
Chief Operations Officer Douglas Owensby sold 3,969 shares for $44,849.70.
President of Beverage Merchandising Byron Racki sold 4,093 shares for $46,250.90.
The largest financial transaction was by CEO Michael King, who sold 45,113 shares for $509,776.
"The sales that were reported in our SEC filings on Monday were sales automatically done by the Company to cover legally required tax withholding and were not discretionary sales made by the executives," a spokesperson for Pactiv Evergreen told FOX Business in a statement.
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Evergreen Packaging, or the Canton Paper Mill, in Canton, North Carolina, is seen from Park Street on Sept. 21, 2020. (Asheville Citizen-Times)
The Pactiv Evergreen plant has been operating in Canton, North Carolina for more than a century.
The words are simply not enough," Canton Mayor Zeb Smathers said after the closure announcement, according to local outlet ABC15. "When I was downtown and I saw grown men with tears in their eyes, there are no words, and no one was prepared on this dark Monday to deal with that."
FOX Business has reached out to Pactiv Evergreen for comment but has not received a reply.