Chetek company declares bankruptcy, 106 employees affected - WQOW TV: Eau Claire, WI NEWS18 News, Weather, and Sports

Chetek company declares bankruptcy, 106 employees affected

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Chetek (WQOW)- A large number of layoffs are announced in a small area city.

106 employees at a Chetek business face the loss of their jobs in October.  Automated Building Components informed the state Monday that it has sold its Chetek operation, on the same day it filed bankruptcy.

The company, owned by Lyman Lumber, supplies roof and floor trusses to lumber dealers.
The company says it expects the new owner, SP Asset Management, to re-hire a substantial number of the affected workers.

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CHETEK (Press Release from DWD) - Automated Building Components, 1111 8th St., Chetek: Approximately 106 employees affected between Oct. 1 and Oct. 14, 2011. DWD will work with its regional partner, the West Central Wisconsin Workforce Development Board, to provide Rapid Response service.

Letter from owner of Automated Building Components to the DWD:

I am writing pursuant to the Federal Worker Adjustment and Retraining Act (WARN), and specifically pursuant to 29 U.S.C. 2102(b)(3), allowing for reducing the notification period. This letter is also in compliance with Wisconsin Statutes Chapter 109.07, specifically Wisconsin Statutes Chapter 109.07(5).

Since the spring of 2011, Automated Building Components (the Company) has been actively seeking financing that would provide the company sufficient capital to operate the business. The company has been unsuccessful in that effect. The company also has been actively taking other reasonable steps in a good faith effort to allow the company to continue to operate.

On August 4, 2011, the company filed a petition under Chapter 11 of the bankruptcy laws. Also on August 4, 2011, SP Asset Management, LLC signed a term sheet for the purchase of substantially all of the assets of the company located at 1111 8th Street, Chetek, WI, subject to overbid and an auction process. The closing of the sale to SP is planned for a date between October 1 and October 14, 2011. Contingencies that could affect the anticipated closing date include the bankruptcy overbid and auction process.

Effective as of the closing of the sale, the company will permanently separate all 106 of its employees on the same day, so on or between October 1 and 14, 2011. No bumping rights exist. It is our expectation and understanding, however, that SP will make offers to employment to a substantial number of the employees of the company.

I am the company official who may be contacted for further information.

Vaughn Lenhard, V.P. Human Resources

Excelsior, Minn.

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