Blumenthal Mills Inc., which operates a jacquard damask weaving plant in Marion, has filed for Chapter 11 bankruptcy, company officials said Wednesday.
Filing under Chapter 11 of the U.S. Bankruptcy Code frees a company from the threat of creditors’ lawsuits while it reorganizes its finances.
The company made the filing Tuesday, Marion plant CEO Ken Gunnin said.
Gunnin said the company was in negotiations with another company in Louisiana that would provide capital investment, but those negotiations fell through. As a result, and because of the current tough economic times, the company had to file for bankruptcy protection.
The company’s primary shareholder is working to have an infusion of capital investment that would help the company regain its financial composure, Gunnin said.
Gunnin also said he will work at his facility to have a re-organization that will involve some layoffs.
It’s unknown how many layoffs will take place, but Gunnin said there are no plans to close the plant.
The plant is operating under normal procedures, he said.
Blumenthal Mills Inc. is a division of Blumenthal Print Works Inc., which had 450 employees in 2007. Frankie Hasty, the Marion plant’s human resources manager, said the plant employed 250 people in 2007.
Founded in 1924, in New Orleans, the family-owned company is in its third generation of family management under the direction of Harry J. Blumenthal Jr., according to the company’s Web site, www.blumenthalprintworks.com.
Blumenthal began as a sales organization, converting and importing mattress ticking for sale in the United States. In 1975 Blumenthal Mills Inc., a jacquard damask weaving facility, was opened in Marion.
On the Web:
Blumenthal Print Works Inc., www.blumenthalprintworks.com
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