8K FILED

http://jbii.ir.edgar-online.com/fetchFilingFr...;Type=HTML

Item 2.05. Costs Associated with Exit or Disposal Activities.

On July 9, 2012, the management of JBI, Inc. (the “Company”) announced to the employees of its Javaco Inc. subsidiary its plan to close its Javaco operations in Columbus, Ohio over the next several weeks.  Javaco is a retail and wholesale distributor of equipment, hardware and tools for maintenance and construction and was acquired by the Company in August 2009.  In the year ended December 31, 2011, approximately $2.3 million of the Company’s total sales of $2.6 million were derived from Javaco; however, the business has not been profitable since 2010.  The closing of Javaco is part of the Company’s strategic plan to focus on its core business, Plastic2Oil®, or P2O®.

The Company expects to incur expenses and charges during the third quarter of 2012 in connection with the closing of Javaco facility.  These expenses and charges, which cannot be reasonably  estimated at this time, will include, without limitation, the following  major components: (i) those associated with the early termination of the  lease for 7,000 square feet of office and warehouse space; (ii) those associated with the  separation from employment of five employees at the Javaco facility;  (iii) those associated with the liquidation and redeployment of assets and preparing the building for return to the  landlord; and (iv) possible impairment of assets.  An amendment to this Form 8-K will be filed when estimates for these expenses and charges are determined.

On July 13, 2012, the Company issued a press release announcing the closing of its Javaco operations. A copy of the press release is attached hereto as Exhibit 99.1.