Construction Reinvented.
Original Lincoln is Closing, Will Liquidate
In a staggering blow to the log home industry, Original Lincoln Logs Ltd. (Chestertown, NY) is scrapping plans to reorganize under bankruptcy protection. According to reports by the Associated Press here and by the Albany Business Journal here, a U.S. Bankruptcy Court judge last week approved an auction to liquidate the 31-year-old company's assets. The auction is scheduled for Jan. 28th at its headquarters in upstate New York and is expected to fetch a minimum of $3.5 million.
It's a sad ending for one of the pioneers in the industry, which employed nearly 50 workers this past fall and now only employs three part-time. Attorney Angela Miller says the company hopes to be sold as a whole.
On Sept. 19th Original Lincoln Logs Ltd. (Chestertown, NY) filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Albany, NY. Lincoln Logs' bankruptcy filing does not specify how deep in debt the company is, but a court statement from Chief Operating Officer Jeff LaPell notes that it owes the Enfield, Conn.-based First Pioneer Farm Credit $2.6 million, mostly stemming from a 2003 revolving credit and loan agreement. The Ballston Spa-based Curtis Lumber is listed as the case's leading unsecured creditor, at $206,000.
Despite having a backlog of sales orders totaling $26.4 million, LaPell said Lincoln Logs is hurting because of the economy and job instabilities. Since spring 2006, sales have declined by 36%. To adjust to the slowing economy, Lincoln Logs tried to stay afloat by shaving $2.1 million off of its overhead by closing unprofitable businesses. Those now-defunct businesses include True Craft Log Homes, which Lincoln Logs acquired for $1.9 million in August 2003, and Snake River Homes, which it bought for $1.2 million in November 2003.
True Craft served Lincoln Logs' West Coast customers, while Snake River manufactured building packages for Swedish Cope-style homes, according to court documents. Snake River in Rigby, Idaho, also filed for Chapter 11 protection.
In October 2003, Lincoln Logs also acquired the AFI Acquisition Co., a sawmill that sits on 15.6 acres near Saratoga Springs. AFI provides Lincoln Logs with raw materials for its home building kits.
It's a sad ending for one of the pioneers in the industry, which employed nearly 50 workers this past fall and now only employs three part-time. Attorney Angela Miller says the company hopes to be sold as a whole.
On Sept. 19th Original Lincoln Logs Ltd. (Chestertown, NY) filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Albany, NY. Lincoln Logs' bankruptcy filing does not specify how deep in debt the company is, but a court statement from Chief Operating Officer Jeff LaPell notes that it owes the Enfield, Conn.-based First Pioneer Farm Credit $2.6 million, mostly stemming from a 2003 revolving credit and loan agreement. The Ballston Spa-based Curtis Lumber is listed as the case's leading unsecured creditor, at $206,000.
Despite having a backlog of sales orders totaling $26.4 million, LaPell said Lincoln Logs is hurting because of the economy and job instabilities. Since spring 2006, sales have declined by 36%. To adjust to the slowing economy, Lincoln Logs tried to stay afloat by shaving $2.1 million off of its overhead by closing unprofitable businesses. Those now-defunct businesses include True Craft Log Homes, which Lincoln Logs acquired for $1.9 million in August 2003, and Snake River Homes, which it bought for $1.2 million in November 2003.
True Craft served Lincoln Logs' West Coast customers, while Snake River manufactured building packages for Swedish Cope-style homes, according to court documents. Snake River in Rigby, Idaho, also filed for Chapter 11 protection.
In October 2003, Lincoln Logs also acquired the AFI Acquisition Co., a sawmill that sits on 15.6 acres near Saratoga Springs. AFI provides Lincoln Logs with raw materials for its home building kits.
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