Oregon tribes foreclosing on MicroGreen of Arlington

ARLINGTON — MicroGreen Polymers sold millions of plastic cups made from recycled material, but it couldn’t make enough to cover its debts.

The clean-tech startup suddenly closed Friday, putting about 150 employees out of work.

One of its largest backers, the Confederated Tribes of the Grand Ronde in Oregon, is foreclosing on the company, which did not respond to requests for comment.

In all, the tribes put $18 million into MicroGreen in 2013. That included $10 million in equity investment and an $8 million loan in December made through Ilihi, a subsidiary of the tribes.

At the time, the tribes touted the investments, and the Native American Finance Officers Association gave the tribes its Deal of the Year Award.

But “MicroGreen was not able to meet its financial obligations,” said Titu Asghar, the economic development director of the Confederated Tribes. “They’d been behind for a while on monthly payments” on the $8 million loan from Ilihi.

“We were surprised that the company was not able to sell enough products,” he said.

MicroGreen was supplying eco-friendly, lightweight cups to air carriers including Alaska Airlines, Allegiant Air, Virgin America and United Airlines.

The company estimated the potential global market for such plastic products was $50 billion, and commercial air carriers were a small slice of that, according to MicroGreen’s website.

“They were able to make sales but not a profit,” Asghar said.

The tribes are moving ahead with foreclosure and will sell off MicroGreen’s assets to cover debts he said.

It is not clear if or how much the company might owe other lenders. It had raised more than $40 million from investors, which included the Stillaguamish Tribe and recycling and trash giant Waste Management. The company’s assets include production equipment and, apparently, a building in the Jensen Business Park in Arlington near Highway 9, which has an assessed value of $5.7 million, according to Snohomish County property records.

A couple of cars were parked outside the building on Tuesday. A piece of yellow paper taped to the front door said, “MicroGreen Polymers, Inc. has ceased operations until further notice.”

A man answered a knock and said he would pass along a request for comment. However, the company did not reply by late Tuesday.

MicroGreen was founded in 2002 by Krishna Nadella, who had been a doctoral student in mechanical engineering at the University of Washington.

The company has been in Arlington for most of its existence, said Arlington Mayor Barbara Tolbert.

The CEO until recently had been Tom Malone, who left the company shortly before a visit by Gov. Jay Inslee in January, said Tolbert, who accompanied the governor on his tour.

Malone did not return messages left on his cellphone.

The company in recent months was talking about growth, not closure.

During Inslee’s visit, executives said they expected production to increase and expressed support for improving Highway 531, which connects to I-5, to handle additional shipments.

During a meeting in December with Seattle-based private individual investors, company officials did not indicate that MicroGreen was in financial trouble, said a person who attended the meeting.

WorkForce Snohomish said it has asked the company for permission to hold information sessions for now-out-of-work employees about unemployment insurance, job services and other resources.

While MicroGreen is being gutted to cover debts, it is not necessarily the end, said Asghar, the tribes’ economic development director.

“The technology works, we know that,” he said. “Maybe whoever buys the company can make it work.”

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Lily Lamoureux stacks Weebly Funko toys in preparation for Funko Friday at Funko Field in Everett on July 12, 2019.  Kevin Clark / The Herald)
Everett-based Funko ousts its CEO after 14 months

The company, known for its toy figures based on pop culture, named Michael Lunsford as its interim CEO.

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Pharmacist John Sontra and other employees work on calling customers to get their prescriptions transferred to other stores from the Bartell Drugs Pharmacy on Hoyt Avenue on Wednesday, July 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Bartell Drugs location shutters doors in Everett

John Sontra, a pharmacist at the Hoyt Avenue address for 46 years, said Monday’s closure was emotional.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.