WGNO

‘Set up to fail’, Metro Service Group files for bankruptcy, claims Cantrell administration violated contract

NEW ORLEANS (WGNO) — Attorneys with the waste management company, Metro Service Group, Inc., announced Thursday that the company has filed for Chapter 11 bankruptcy in federal court, claiming that the filing could have been avoided had the Cantrell administration not violated provisions of its contract with the city.

The company says the filing was necessary in order to protect contractual and employee rights.

It comes after numerous service disruptions by Metro, which the company blamed on the administration’s refusal to adequately address the “emergencies” caused by an “excess tonnage” of trash during the pandemic and after Hurricane Ida.

Metro specifically blames Mayor Latoya Cantrell’s pandemic stay-at-home order for producing more residential garbage, and an excess of spoiled food after Hurricane Ida knocked out power to the city for days.

The company said it gave written recommendations on how the City could handle the residential pickup during the pandemic but said there was no response.

According to Metro’s press release announcing the bankruptcy filing, these are the issues the Cantrell administration failed to address:

WGNO News reporter Anna McAllister asked Mayor Cantrell on Thursday about Metro’s announcement.

Cantrell replied, “I haven’t heard that yet.”

Metro said it will continue to collect waste in Lakeview, New Orleans East, the Lower Ninth Ward and Gentilly, while the company’s case is in bankruptcy court.