Bang Energy’s parent company Vital Pharmaceuticals (VPX) has initiated mass layoffs in preparation for its anticipated acquisition by Monster Beverage Corp., according to an internal memo viewed by BevNET.
All employees at VPX’s facility in Weston, Florida have received a 60-day notice of permanent termination, which is expected to be completed between September 3 and September 10, according to a company-wide letter sent yesterday evening by Lourdes Barsky, VPX’s VP of employee services. No recall, transfer or bumping rights exist. The layoffs do not extend to VPX’s production facility in Phoenix, which is included as an asset in Monster’s purchase agreement for Bang.
The letter confirmed that VPX has been marketing its assets and that a sale “is anticipated to be completed shortly,” but does not reference Monster by name.
“We thank you for your contributions to VPX and appreciate your focus in the days ahead,” the letter reads.
Sources with knowledge of the proceedings told BevNET the letter was sent just a few hours after an all-hands VPX company meeting via Zoom attended by multiple executives of Monster Beverage Corp., including co-CEOs Hilton Schlosberg and Rodney Sacks, who congratulated employees for their work in building the brand. Representatives of Boston-based Huron Consulting Group, which has been helping manage the company’s post-bankruptcy transition, informed employees to expect a Worker Adjustment and Retraining Notification Act (WARN) letter outlining further steps. Current employees were encouraged to apply for available positions at Monster.
The layoffs leave the company’s ability to do business in question, as the cuts reportedly extend from regional and national key account directors all the way to Gene Bukovi, chief operating officer and longtime partner of founder and former CEO Jack Owoc.
Monster’s $362 million acquisition of VPX is expected to be finalized at a hearing on July 12.
VPX’s employee services department did not respond to calls for comment this morning.
The full letter can be read below.
