Employee-Owned Business In Newark Is Success Story Amid Pandemic

NEWARK, NJ — It’s one thing to have a voice in your workplace. It’s something else entirely when you own it.

Just ask Lloyd Wilson, a warehouse supervisor at the Newark Paper Company, who is about to realize a lifelong dream: own a business in his hometown.

Earlier this week, a ribbon cutting ceremony took place outside the Newark Paper Company warehouse on New Street. It marked the launch of the city’s new “employee ownership program,” which is being rolled out in partnership with Invest Newark, a local economic development group.

The story of the Newark Paper Company is a welcome ray of hope as many businesses in New Jersey collapse amid the coronavirus pandemic, officials say.

Founded in 2018 and currently a subsidiary of Invest Newark, the company distributes paper products and office supplies. Before the pandemic, it was set to open its warehouse and begin distribution to its clients, including major venues and event companies throughout New Jersey.

Then came COVID-19.

After the state began to shut down at the peak of the crisis, the Newark Paper Company reinvented itself, shifting its operations to support local independent grocers and bodegas with vital paper goods – just as supplies began to dwindle across the state.

Although its original plan was to provide mass paper products for large venues like the New Jersey Performing Arts Center, the company is now finding a niche distributing items such as paper towels, toilet paper, face masks and hand sanitizer.

But like most successful businesses, the heart and soul of the Newark Paper Company is its workers.

Since its launch, Wilson and the company’s other two employees – each a resident of the Greater Newark region – have been training to eventually take over as owners. Together, they’ve been learning how to run the warehouse, keep inventory, maintain financial records and make the crucial decisions that keep a business alive.

Their hard work will pay off as soon as the company starts turning a profit, at which point Invest Newark will separate itself and pass over full ownership to its employees.

“I’m thrilled to be able to make a real impact in my hometown,” Wilson said. “The opportunity to own my own business in my community is a dream come true.”

Mayor Ras Baraka offered high praise for the company and its workers, holding them up as a symbol of what’s possible when the business world meets social justice.

“The Newark Paper Company is important in many ways for our city,” Baraka said. “It demonstrates our resilience in the face of the negative impacts of COVID-19, our determination to bring prosperity and economic growth to all corners of Newark, and our efforts to empower our residents by creating worker-owned cooperatives where the employees not only have a voice in the company, but actually own it.”

“This project is a win-win for our residents and our city,” Baraka said.

Bernel Hall, president and CEO of Invest Newark, said the Newark Paper Company is an important reminder that Newarkers are “resilient and innovative” in times of crisis.

“In a time of slowed economic development, we are excited to celebrate a definitive step towards equitable economic growth,” Hall said.

• See related article: Black-Owned Movie Theater In Newark Thrives Amid Pandemic
• See related article: NJ Store Clerk Buys Old Workplace After Lottery Win

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