Symbiot Will Reform Under a New Banner

Symbiot will reform its snow removal operations as part of an integrated services company called Symbiot Property Services America, company CEO Mike Edwards told Lawn & Landscape's sister publication, GIE Media’s Snow Magazine. However, the amount snow contracts owed for unpaid services can expect to recoup is unknown at this time, he adds.

“The nearly year-long restructuring program has been a painful but necessary process for the suppliers, network partners and Symbiot employees,” Edwards says. “In the end, however, these actions, along with our previously completed actions, have dramatically reshaped the Symbiot platform as a serious competitor for the outsourced property/facility services market in the U.S.

“Rather than the prior approach that had each business broken out into separate units, we’ll be selling a full array of services under a single banner,” Edwards says.

The new company is expected to be up, running and securing contracts by the end of July, Edwards says.

Last week, news hit the snow and ice removal industry that Symbiot had moved forward with plans to dissolve its snow removal division. On May 31, Draper-based Symbiot Snow Management Network filed with Utah’s Division of Corporations and Commercial Code to dispose of claims against it, as well as the debts it owes, according to a statement issued last week by the Salt Lake City law firm of Jones, Waldo, Holbrook & McDonough.

Contractors have until October 13 to file an official claim for any unpaid funds, and many are left in limbo as to how much of the unpaid debt they will recoup from Symbiot.

Edwards couldn’t comment as to what percentage former Symbiot snow contractors filing claims prior to Oct. 13 could expect to receive in final payment for their snow and ice removal services.

“It’s hard to say at this time,” he says. “We still have to go through the process to liquidate the assets… I can’t crystal ball that at this time.”

However, the chances of contractors receiving full compensation for unpaid services are slim, Edwards says.
    

“Generally, that’s pretty remote,” Edwards says. “But it’s hard to say at this point. We won’t know until we go through this process, and we’re two to three months out before we get to that point.”

Prior to the liquidation announcement, Symbiot had about 100 snow contractors on its payroll to tend to its service contracts, Edwards says. Under the new Symbiot Property Services America structure, Edwards says they will look to have between 90 and 130 snow and ice removal contractors subbing for them in order to provide baseline coverage for the company’s market footprint.

“But there is a good chance we’ll go beyond 130 if the demand requires it,” he says.

Edwards acknowledged that Symbiot’s reputation may be tarnished with snow contactors and that the new company has plans and programs in place to rebuild relationships and trust. The company expects to roll out a number of new programs in the next six months that may prove favorable to its subcontractors. Once such program, Edwards says, involves a private-label insurance program through Symbiot that would provide quality snow plowing insurance to its contractors at a reduced cost.

While the previous year has been trying for Symbiot, the company has experienced a number of successes in relation to its restructuring process, which Edwards says is a normal course of business for relatively new or start-up ventures like Symbiot. For example, since July 2005, Symbiot’s overhead expenses were reduced 65 percent. In addition. Symbiot consolidated its contract services, operations, sales and marketing functions into a centralized national account operations unit for greater efficiencies across all service lines and customers. Also, the company restructured is service networks and supporting supply chains.

In November 2004, Snow Contractor John Allin sold his Erie, Pa.-based Snow Management Group, one of the nation’s largest snow-removal firms at the time, to Symbiot. Allin stayed on with the company as corporate vice president of operations until December 2005, when he left to start his own ice-melter manufacturing company, Snow Dragon.

Symbiot announced in December 2005 to consolidate its Erie, Pa. operations group, which included its snow removal business, to its Utah headquarters at the conclusion of the current snow season.

The move, according to the company’s official statement, was meant to increase efficiencies and operational capabilities. Symbiot had hoped the reorganization would allow it to meet spiked needs from customers that can occur at certain times of the year, certain points in the business cycle or during certain types of weather events. Symbiot also hoped the move would grant greater cost controls and allow it to grow, as well as provides greater operation integration and execution, increasing its ability to meet customer requirements.

Symbiot’s board brought in Edwards in July 2005 to accelerate the integration of SMG into Symbiot and to increase the company’s operational efficiencies.

The 2004 merger caused quite a stir in the snow removal community, making Allin a pariah with a segment of the snow and ice removal community. Many former SMG subcontractors, unhappy with Symbiot’s terms for payment of snow removal services still owed to them, have in the past threatened legal action.

There were initial cash-flow problems and Symbiot still owed money to some snow subcontractors on their SMG contracts. Edwards says all of those contractor claims associated with the SMG merger have been settled.