ELKHART — A controversial company began laying off its workers Friday. Sturgis Iron and Metal owns the Mega Shredder recycling operation. The company has filed bankruptcy.

"That seems to be the last operation for Sturgis Iron and Metal in Elkhart, Indiana,” said Elkhart Mayor Dick Moore.

Moore says the city did its best to work with the company to cut down nuisance problems with the operation.

The company trying to sell the facility, but discovered the site had underground environmental problems that predated the company's operation. The company opted for bankruptcy.

"We would never find any pleasure in a company in our city having to file for bankruptcy,” Moore said. “We had hoped for a much better resolution, hopefully we could have kept the operation going and yet quieted it down where it would not have been a nuisance in our neighborhood."

The loss of 109 jobs here is hard to take.

"Of course we never like to hear about that, about people losing their jobs. There will be some loss of taxes, some loss of money in our TIF zone there,” Moore said.

Residents have varying opinions about the operation but the majority felt they did not want the situation to result in the loss of jobs.

"Well I’m just sorry the people had to lose their jobs over the Mega Shredder,” Dave Anderson told WSBT News.

"I've got a buddy, Tom, that works there and I feel bad for him losing his job,” said Scott Thomas. “But on the other hand though, I guess the neighbors of the place are going to get some relief without the noise and the explosions and all that … so kind of mixed feelings about it."

A company spokesman says there will be a gradual phase-out of jobs in Elkhart, South Bend and Sturgis. A total of 250 people work at all three locations.