As reported by the Peninsula Daily News, Poulsbo-based concrete company, Fred Hill Materials, has filed for Chapter 7 bankruptcy in Seattle's U.S. Bankruptcy Court. Allegedly all 42 Employees were notified that they had worked their last day via letter on April 20.
Fred Hill Materials supplied concrete to residential, commercial and military customers over five counties between the North Olympic and Kitsap peninsulas. Offices were located in Port Townsend and Sequim and the company began hiring in 1946.
James Tracy, the attorney handling the company's bankruptcy, said, "The positive plans and forecasts for the company did not materialize. Major projects that the company was counting on were delayed, canceled or tied up in the courts. This is a tragedy for the employees and their families of the company, although it is no different from what a lot of people are feeling due to the decrease in the building trades business."
Alex and Adam Hill, the current owners and grandsons of Fred Hill, wrote in the April 20 letter, "During the past several years, we thought we could survive the depressed state of the construction industry, one further burdened by the banking credit crisis."
The Hills further cited that sales were down 46 percent in the last quarter compared against sales records for 2011.
Thorndyke Resource, a project waiting permits from Jefferson county and an environmental review, is not a company governed by Fred Hill Materials. Thorndyke is planning on building a lengthy conveyor built to move gravel from a pit to a dock and then out of Hood Canal.
Thorndyke company spokesman, Douglas Weese, said, "The Thorndyke Resource project will move forward accordingly. Although Fred Hill Materials served as a representative for project proponents, it's always been a separate entity and has never been the project applicant."
After selling interest in the Shine operation to another gravel company in 2009 – in an attempt to lessen its financial burdens – the company filed for Chapter 11 bankruptcy in February of 2010. During the Chapter 11 reorganization the company was able to maintain its day-to-day operations.
In the 2010 Chapter 11 filing liabilities were listed at $5.3 million and assets at $8.6 million. A 2010 news release from Fred Hill Materials said that 18 employees were let go and 100 were retained.
The largest debtor, Western Conference Teamsters Pension Trust, stated that Fred Hill Materials had failed to keep up with its payments. Delinquent trust fund contributions, liquidated damages, interest, as well as fees and costs for attorneys has tallied up to over $480,000 in debts.
The conversion of Fred Hill Materials Chapter 11 bankruptcy into Chapter 7 began in the court in March of 2011.
Whether you need to file for a business or personal bankruptcy, you must contact a bankruptcy attorney for help protecting your assets, and to help plan your future exit strategy. The sooner you get started, the sooner you can plan for your own future or the future of your business.