Klausner Lumber One Sawmill Files for Bankruptcy

SEATTLE (Scrap Monster): Klausner Lumber One has sought Chapter 11 bankruptcy protection for its Florida sawmill. The Austrian owned company reportedly has over $100 million in debt.

Klausner had shut down the mill without notice on March 16^th. The parent company staff serving at the sawmill were abruptly evacuated to their home country, in an attempt to prevent the officials from getting stranded in the U.S. due to pandemic related travel restrictions. Another plant owned by the company in Enfield, North Carolina too had closed doors before several weeks. Incidentally, the two plants had a combined annual production capacity of around 350 million board feet of southern yellow pine.

At the time of the closure of the Florida mill, the company had promised to pay the workers through the full closing week. However, employees alleged that the company has not paid them since two weeks before the closure. They were laid off without specific cause. Moreover, the company has violated the Worker Adjustment and Retraining Notification (WARN) Act, by not providing at least a 60-day notice to workers, the complaint said.

Meantime, the company said that it intends to file all the details in connection with financing and sales plans as well as its debt and capital structure with the Delaware Court next week.

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