The troubles for employees at a Mazomanie printing plant have returned.

Just 16 months after Synergy Graphics in Plymouth, Minn., purchased Sunny Industries out of receivership, Synergy has announced that it will close its Synergy Web Graphics plant this fall, citing debts of more than $18 million.

The closing, effective Sept. 19, will put 125 people out of work. And just like in 2006, the business is back in receivership.

The plant prints magazines and direct-mail pieces.

"Synergy is facing unforeseen business circumstances that have occurred while it has been in the midst of seeking capital that it reasonably believed would be available," Michael Polsky, a Milwaukee attorney who was appointed receiver, said in a letter to the state Department of Workforce Development.

Polsky, who in March was appointed managing partner of Buckingham, the condominium development company for Phase 2 of Metropolitan Place in Downtown Madison, could not be reached Wednesday by the Wisconsin State Journal.

Plant manager John Allison declined to comment on the announcement. Michael O'Meara, Synergy's chief operating officer, could not be reached for comment.

"It's upsetting to lose an employer," said Scott Stokes, village president. "They hired a lot of qualified people. It's disappointing but hopefully, just like when Sunny went out, we'll find someone to come in and pick up the pieces."

According to documents filed last week in Dane County Circuit Court, Synergy Web Graphics had accounts receivable of $1.3 million and inventory of about $1.5 million, but the fair market value of the company's assets were not known.

The company owes Fifth Third Bank in Cincinnati, Ohio, $11 million, trade accounts $2 million, and it has $5 million in other unnamed liabilities, according to court documents.

In the court filing, Polsky said he wants to continue running the business on a limited basis until he can determine whether the company's assets can be sold as a whole.

In March 2007, Synergy Graphics purchased Sunny Industries, its 350,000-square-foot plant and seven printing presses for $7.8 million. The purchase came after the plant closed just before Christmas 2006 after its former owner ran out of money. The closing put 380 people out of work at what was then Mazomanie's largest employer.

Stokes said he is unsure about the future of the plant, but good news will come in January when Cardinal Glass completes construction on a plant in the village's industrial park. The $60 million facility, which will make components for solar panels, is expected to employ about 120 people.

"That will help and they're talking about an immediate expansion," Stokes said. "So, that's looking good for Mazo."