Scottsdale, AZ (PRWEB) October 02, 2012
Green Planet Group, Inc. (OTC Markets:GNPG) announced today that it has completed a reorganization of its business and has transitioned out of the temporary staffing business. The benefits of combining a staffing business with a “green” high technology business have not materialized as expected. The original goal of selling green technologies through the temporary staffing sales channel were ineffective and therefore we have decided to terminate these efforts.
The actions taken to restructure Green Planet are outlined as follows:
A. As previously announced, Lumea, Inc., our staffing subsidiary (“Lumea”), established a Vendor Management Service relationship with Tri-State Employment providing for among other things, competitive worker’s compensation insurance coverage.
B. The Company requested the Federal Court to allow the two Lumea subsidiaries that were in Chapter 11 to be voluntarily dismissed. The Court signed and approved this request on August 27, 2012. Lumea Staffing, Inc., and Lumea Staffing of California, Inc., has emerged from Chapter 11.
C. Lumea then assigned all of its temporary staffing customers to either Corporate Resource Services, Inc., (CRS) or a local Arizona company. In addition, the majority of Lumea’s corporate staff became employees of one of these two companies.
D. As these transitions are completed one branch at a time, Lumea is closing that office and ceasing its respective operations. It is expected that by the end of the October, all Lumea operations will be shut down.
E. The ongoing payments from CRS to Lumea are based upon the profitability of its book of business over the life of each of the customer contracts that were assigned. All of these payments will be used to pay down Lumea’s debts, especially its payroll tax debt.
The primary reasons the Company decided on this reorganization plan was that temporary staffing companies are generally a predictor of business activity and usually grow rapidly when the general economic conditions are improving. Lumea’s revenue growth over the past twelve months was minimal. In addition, the impact of the Health Care for America Plan (Obama Care) on the temporary staffing industry in unknown, but its impact on the industry’s future will be significant. Therefore, building a long-term relationship with Tri-State with annual revenues of $1.6B and over 180 local offices in the United States was essential because we believe that only major staffing companies with substantial resources will have the best opportunity to grow and prosper in the future. We believe that Tri-State will be successful and will service Lumea’s customers for many years to come. This will insure that the long-term payments from CRS to Lumea will continue for the long-term and ultimately will pay-off Lumea’s debts.
In addition, remaining in the temporary staffing business would continue to consume the majority of the Company’s financial capacity and management’s resources. Concentrating all of our efforts and focus on building our world class, green technologies into successful revenue and profit generators, all with significant margins, will enhance our growth potential and net profits, and will ultimately increase shareholder value.
Edmond L. Lonergan, President & CEO of Green Planet Group, Inc., stated “this reorganization will permit Green Planet to focus on its core green technologies, especially on its fuel efficiency and emission reducing technologies. These technologies are now becoming accepted in all major world markets, especially as the need to become more environmentally conscientious and reduce pollution has become a global priority. We project both the revenue and profit growth in these specialized areas will be significant.”
ABOUT GREEN PLANET GROUP
Green Planet Group, Inc. (OTC– Markets:GNPG) is based in Scottsdale, Arizona and engages in ongoing research and development to create Greentech and Cleantech products and services that enhance our environment.
The Company's revenues are currently derived from the production and distribution of fuel-based energy conservation and clean-air products. For additional information, please visit http://www.greenplanetgroup.com.
Certain information included herein may contain statements that are forward looking, such as statements relating to plans for future expansion and other business development activities. Such forward-looking information is subject to changes and variations which are not reasonably predictable and which could significantly affect future results.
INVESTOR RELATIONS CONTACT
TEN Associates, LLC
Tom Nelson, Managing Director
Phone: (480) 232-5469