Update: Reviving the Barna Brand

Darlene Branim took over as the new president of Jim Barna Log Systems (Oneida, TN) in November of 2004, at the height of the new home building boom. She was among only a handful of women at the helm of a log home company. Founded by Jim Barna, who passed away June 5th 2004, the company is one of the largest log home manufacturers in the U.S., selling more than 13,000 homes in its 34-year history.

However, not even Branim’s 20-years experience in the log home industry could prepare her for the sharp economic downturn that was to come, the collapse of the new housing market and the tightened lending restrictions that forced many buyers out of the market for their dream home.

“In retrospect, we all knew it was coming. But we didn’t know the swift, nose dive the market would make,” says Branim. “We just ran out of time. If we could have had another two years of solid profitability, we could have had this company on more secure footing.”

But when orders for the log home industry began to drop dramatically this fall, Branim faced only hard choices. She said her first thought was to preserve the jobs for the hard-working employees and the careers of dozens and dozens of independent distributors and builders that have made the 30-plus year old company one of the most recognizable brands in the industry.

“In October through December, the lack of orders just shut us down. So I started talking to the Barna distributors, knowing they’ve worked just as hard in their careers to make a name for themselves and the Jim Barna brand,” Branim says.

Thus, a group of thirteen longtime distributors are preserving the brand. Forming a new company, Log Investors Inc., the thirteen entered into a management agreement with the Barna Log Homes LLC on Dec. 19. This occurred shortly after the company laid off 80 employees.

The new company, which is targeting to complete the acquisition of Barna’s corporate assets by March, has already hired back 50 employees and have preserved their very loyal distributor network with plans to eventually return to full staff and operations as the market recovers. “We are shipping homes as of today, honoring the company’s commitments to its clients,” explains Joy Mulkern, the CFO, treasurer and secretary of Log Investors, as well as a longtime distributor of Barna Log Homes in western Pennsylvania. “Currently we have a management agreement with Barna Log Homes LLC, where we are leasing the manufacturing operations and offices and we are in negotiations to purchase the company’s assets. Many of the distributors and builders have model homes and their careers are wrapped up with this company. So we are pooling our funds and moving this company forward.”

The new company officers include: Jeff Cox, president, a Ohio resident and a builder of log homes for more than 24 years; Kenneth T. Parsons, vice president, builder/distributor of North Carolina; Joy Mulkern, Secretary/Treasurer, builder/distributor of Western Pennsylvania, Gary Bates, a distributor from Northern Ohio, Joe Dymond, Northeastern Pennsylvania builder/distributor, Andrew Green, Michigan builder/distributor, and Clay Bradburn, builder/distributor in South Carolina.

After the agreement is finalized with the lender, Branim says she plans to work with the new company as a consultant to provide a smooth business transition to ensure all current and future clients’ needs are met. “We’re still providing quality log home packages. All deposits are being honored. That hasn’t changed,” she says.

As for the future, Branim is unsure of her next steps. “I worked for 25 years in the log home industry and I’m not sure I have another 25 in me. The last two years have been extremely challenging. And I’m still not sure of what I want to be when I grow up,” she says with a chuckle. “But I am looking forward to that next chapter in my life. Hopefully it will be less stressful and more enjoyable.”