NEW ORLEANS — Bayou Steel Group, the owner of the LaPlace steel mill that closed Monday and abruptly left 376 workers without jobs, officially filed for bankruptcy the same day, according to Deleware bankruptcy court filings obtained by WWL-TV.
In addition to the LaPlace plant, a second plant in Harriman, Tennessee is also set to close, affecting 72 employees there.
In a statement, Bayou Steel cites "a severe lack in liquidity" which prevented the company from purchasing raw materials for its Chapter 11 filling in U.S. Bankruptcy Court for the District of Delaware.
Parish and state officials, as well as the hundreds of employees at the plant, were not notified about the LaPlace closure until Monday, when many showed up for the start of the work week.
The bankruptcy petition lists liabilities of up to $100 million.
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In St. John parish, the concern now is the ripple effect for the area as some people will have to move for work elsewhere.
Officials have said the mill’s closing could cost the parish $1 million a year in taxes -- a big hit for a little parish like St. John.
Governor John Bel Edwards and other officials have blamed the mill's closure on the effects of tariff increases on metals as a result of President Donald Trump's trade policies.
Shane Terry, who identified himself as a leadman at the Bayou Steel plant in Harriman, reached out to WWL-TV Tuesday night and said they're experiencing the same problems as Louisiana's workers.
"I have a family of six and there's not many good jobs around our town. I pray for all my Bayou Steel family. When you work the hours we have for the past few years, you're at work more then home. So they become family," Terry said.
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