DGI Claims Sabotage, Sells Equipment to IWCO Direct

CHANHASSEN, MN—Direct marketing solutions provider IWCO Direct has purchased a portion of the assets of DGI Services, a former direct marketing services firm based in Swedesboro, NJ.

IWCO Direct is moving the acquired assets to its existing locations in California, Minnesota and Pennsylvania. The acquisition will advance its strategic capital investment plan and allow the company to offer customers a broader range of direct marketing services.

"This transaction presented a unique opportunity for IWCO Direct to serve the immediate needs of DGI's customer base while enhancing value to our current customers and DGI's customers through additional equipment options," stated Jim Andersen, IWCO Direct CEO.

Meanwhile, there was a bit of controversy surrounding the closure of DGI Services. In a letter to employees explaining the decision, “industrial sabotage” was the given reason. The company cited a break-in at its Swedesboro, NJ, facility in November, where destruction to computer equipment and a digital press caused million of dollars in damage.

In all, roughly 600 full- and part-time employees were told via the letter that their employment would terminate by the end of this month.

In reporting on the move, the Gloucester County Times reported that a claim of industrial sabotage enables DGI to "side-step" provisions of the state Worker Adjustment and Retraining Act (WARN), including 60 days' notice prior to mass layoffs (of 100 employees or more) and providing severance pay. The FBI is investigating the break-in.