Operations Closing, Moving for Two Johnson County Companies

Budcat Closed; River Bend Moving to Victor

Two companies in Johnson County have announced plans to discontinue or move operations.

On Tuesday, video game developer Budcat was closed by Activision.  Budcat has been owned by Activision since 2008.

Activision stated in a release, “We continue to streamline our music development resources to ensure that they are aligned against our slate and strategic goals. As a result, we are implementing a targeted reduction in jobs in our Quality Assurance team in California and closing our Budcat studio in Iowa. Budcat has been a great partner to Activision and has created a lasting impact on the Guitar Hero franchise.

Approximately 88 positions, or approximately 1% of our global workforce, will be impacted by these reductions. We are working to redirect those employees that are impacted to other parts of the company where possible, as well as offering them outplacement counseling services.”

Joe Raso, president of the Iowa City Area Development Group, said his organization has reached out to help meet the needs of Budcat employees.  “There's the broader question of what opportunities the entrepreneurs and the folks they've had working for them have in the marketplace going forward,” Raso said.

Arkansas-based River Bend Industries is closing its plastics factory in North Liberty and investing $1 million to expand and upgrade its plant in Victor, about 35 miles west.  The company will move machinery and employees.

Raso said the announcement was not a surprise.  ICAD Group and Priority One in Cedar Rapids have referred prospects to the property knowing space was becoming available.
The North Liberty plant has about 60 workers. River Bend President Ron Embree says all have been offered jobs.  In addition, five to 10 workers will be added.