After more than 60 years in business, Penticton’s Structurlam has filed for bankruptcy with a $60 million US starting bid for its assets.
The mass timber manufacturer’s three facilities in Penticton and Okanagan Falls will remain open and operating as usual until the proceedings are complete.
“For all three it’s business as usual,” said Paul Sehn, media spokesperson for Structurlam. “Those will continue to operate until there is a formal new owner, and at that time it will be the prerogative of the new owner to decide what they want to do.”
Structurlam’s consolidated plant in Arkansas suspended its operations earlier this year, after the facility’s main contract with Walmart was cancelled. The loss of that contract led to the company filing for Chapter 11 bankruptcy in the U.S., and seeking to have that bankruptcy recognized in B.C.
Structurlam was formerly the provider for Walmart’s home office campus.
The company is one of the largest mass timber manufacturers in North America, and provided the prefabricated wood components used in the Brock Commons student residence at UBC, which at the time it was completed was the tallest mass timber building in the world.
Mercer International has placed a stalking horse bid on the company’s assets ahead of open bidding in May
The employees at the Penticton and Okanagan Falls locations will continue to paid for their work through the bankruptcy proceedings.
Structurlam secured a $7.5 million debtor-in-possession facility from the Bank of Montreal to fund its operations throughout the court process.
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