Ed Amick, who has worked there since 1999, went to pick up his paycheck Friday, and it wasn't there. He said Deborah Korn, head of human resources, told him "We're shutting the doors." Amick said he was owed three paychecks.
Korn was reached by The Herald Bulletin, but said she had no comment.
"He didn't let us know," said Amick about the business' owner, Randy Railing. "There was no communication in the last six months."
Railing didn't return a phone message from The Herald Bulletin.
Elwood Mayor Merrill Taylor said he was out sick Friday but heard the news.
"I knew they were in financial trouble," he said. "It's a bad deal for the workers, and for the city of Elwood. But if he doesn't have enough money to keep it going, he has to do something."
Bill Savage, Elwood's economic development director, said the business, which had been operating in Elwood since 1962, shut down at 7 a.m.
"I've been on the phone all day about it," he said. "It's a big loss for the city of Elwood."
He said Railing was trying to secure financing to stay open but hadn't found it yet. State Plating, on North Ninth Street, was in danger of closing in 2004, and Savage said it felt good when Railing took it over and saved 100 jobs. When the announcement was made that the factory would stay open, then-Gov. Joe Kernan was in Elwood for the good news.
According to The Herald Bulletin on May 12, 2004, $2.2 million was invested in State Plating. "We have a real success story here at State Plating," Kernan said in The Herald Bulletin article. "There was a lot of uncertainty over the past year or so, but Randy Railing and the other folks put together a great team. It's the kind of thing that can happen when you pull together."
But it didn't last.
"The cost of doing business, the cost of nickel turned into a struggle," Savage said.
State Plating brought in metal products and plated them with nickel only, nickel chrome and dual nickel chrome finishes, according to the company's Web site, stateplating.com. "Our full service buffing and polishing department is capable of handling a wide range of part shapes and sizes."
Taylor said he remembered when Railing took over the business.
"He got a good start," said the mayor. "But with the way the economy is going, it looks like he lost out."
In its heyday, State Plating ran three shifts and employed nearly 400 people. He said he didn't know how many Elwood residents worked at State Plating, but said the city needs to give them a helping hand.
"I hope someone will look (at the factory)," Taylor said. "Hopefully, we'll get it opened back up."
David Guffey, who lives in Anderson, was laid off from State Plating on April 14. He'd only worked there since October. He was one of about 30 let go, and found out about the closure Friday when he was at Indiana Workforce Development. He overheard someone reading a fax that said State Plating had closed.
Guffey was also due a check.
"I called about my check and talked to Korn," he said. "She said, 'We don't have funds to mail it out. All money is going back to the bank.'"
After Railing took over, Amick said, there was no more health insurance or 401(k)'s. He said he took his existing 401(k) and transferred it to an IRA. The only benefits Railing kept, said Amick, were seniority and vacation. Amick said he and the other employees never received another raise at the company.
Amick said jobs started at $8 an hour. There was no union in the company.
Previously, Railing had owned an Indianapolis business called Quality Finishing, Amick said. Railing sold that business to invest in State Plating.
Even though Amick contended there was no communication, he noticed things. He said a company recently came in and took the Dumpsters because the company owed too much in trash removal. "We started putting trash in boxes," he said. "He owed for the Dumpsters, chemicals. He didn't let us know."
When Guffey was laid off, he was told he'd be back in two to three weeks. He and Amick were both told the company would reopen, but both were wary.
"I don't look for it to open up again," Guffey said. "I just want another job."