Morning Read: eCorp English, Company That Got $500,000 in State Loans, Goes Bust
Is eCorp English the Green Mountain State's own little Solyndra? Not quite. But the Middlebury-based language training company did get lucrative state loans with the promise of creating 100 "well-paying jobs" by 2013 — only to go belly up and leave a trail of vendors and employees who haven't gotten paid for their work.
John Flowers has the scoop over at the Addison County Independent.
According to the Addy Indy, eCorp founder and president Deborah Schwarz said the company couldn't marshal the $750,000 to $1.25 million it needed to launch its new product — and had to close as a result.
The company had trouble making payroll and still owes about $150,000 to various local vendors for services ranging from furniture to electricity. That figure does not include more substantial sums owed to larger investors, creditors, lawyers and the state of Vermont, according to Schwarz.
As Seven Days reported back in February, eCorp received more than $500,000 in economic development loans from the state and was touted by Gov. Peter Shumlin at the company's ribbon-cutting as a business that would ensure "our kids and our neighbors have a bright economic future in this state.”
D'oh! Maybe something was lost in translation?
According to Flowers' report, the state is in line with other vendors and employees to get paid back by eCorp.
