Owens Door and Flooring Closing

Owens Inc., announced the immediate closure of its two woodworking plants which will mean approximately 150 employees will lose their jobs. It is possible that the two manufacturing plants, one which makes doors and the other hardwood flooring, may reopen if they are sold at auction early next year, according to Owen's attorney Tim Nixon of Godfrey & Kahn in Green Bay.

Owens, which according to our sources received a loan totaling approximately $1.5 million in February found itself caught in a credit crunch and was forced to discontinue operations. The company will try to get approval from the Shawano County Circuit Court to be placed in receivership, Nixon said. In a receivership, the company's assets are placed under the control of a receiver who administers them for the court with the intent of preserving their value so they can eventually be sold to pay back creditors. This is normally the best way to keep a business open and running and is the best chance at finding a new owner.

Demand for Owen's products which include wood doors and hardwood flooring, fell dramatically in recent months because of the significant decline in new home construction. Increased foreign competition has also hindered growth in the past couple of years. The double whammy was too much for the company to overcome.