Lineage Logistics, the company that owns a cold storage warehouse in Boyle Heights that was damaged in a fire in June, stated that it is being unfairly blamed for the incident and its aftermath. The company claims it did not cause the fire and took extensive measures to extinguish it and manage the cleanup of spoiled food that resulted from the blaze. Residents and officials have criticized Lineage for failing to meet a city deadline to remove waste, leading to over 4,900 odor complaints reported to the South Coast Air Quality Management District, which issued 38 violation notices for public nuisance.
The California Division of Occupational Safety and Health has initiated inspections related to the fire, and the Los Angeles Fire Department is investigating its cause. Some residents have called for Lineage to leave the area, with Mayor Karen Bass stating that the company had "run out its welcome."
In a lawsuit filed last week, Lineage claims that the company responsible for a solar array on the warehouse roof is to blame for the fire. Lineage's Chief Executive Greg Lehmkuhl emphasized the company's commitment to addressing the situation since the fire began on June 17, stating, "We’ve become the convenient scapegoats."
Lineage, which operates nearly 500 buildings globally, reported spending over $150 million on firefighting efforts and cleanup. The company utilized advanced firefighting resources, including fire cannons and helicopters, to combat the blaze. The cleanup involved hundreds of workers and significant logistical challenges, as they dealt with large quantities of spoiled food.
Despite their efforts, Lineage did not meet the August 14 cleanup deadline. Lehmkuhl noted that the scale of the cleanup was unprecedented in the cold storage industry, requiring extensive manpower and resources.
Lineage has also engaged with affected residents, providing assistance such as air purifiers, grocery gift cards, and temporary relocation support. The lawsuit filed by Lineage names Altus Power, which operated the solar panels, and Pearce Services LLC as defendants, alleging negligence on their part.
In response, Altus Power stated that Lineage is attempting to deflect responsibility for the incident. They assert that as the tenant-operator, Lineage is legally responsible for the cleanup and remediation efforts.
Lineage, which is publicly traded, indicated that while insurance will cover damages, profits will be impacted this year. The company has not decided whether to rebuild in Boyle Heights and is evaluating options to serve its Southern California customers. Lehmkuhl expressed disappointment over the misrepresentation of the company's efforts in the community.