Harvey Lumber company files bankruptcy, employees take pay cuts | News
COLUMBUS, GA (WTVM)-
Harvey Lumber Company in Columbus has officially filed for bankruptcy protection. Bailey Gross, President and Chief Executive Officer, said in an email Thursday the company has been cutting expenses for some time.
Even with the all of the new construction and the housing market making a comeback, it is still not enough to generate enough business for the company. It's more than $5 million dollars in debt.
News Leader 9 was told that prior to filing bankruptcy the company had 57 employees, 17 were furloughed with one week's severance. The remaining employees, from top management down, agreed to take significant pay cuts.
Gross says it is the company's hope that the furloughed employees return to regular employment soon.
Harvey Lumber was founded almost 150 years ago and has been having trouble bouncing back since the housing market collapsed in 2008.
The decision to file bankruptcy was difficult for the company to make. "After consultation with financial and legal advisors, as well as our creditors, we concluded we had no choice. The family was unanimous in that decision," said Gross.
When asked about the possibility of closing the company, News Leader 9 was referred to Harvey Lumber Company's attorney.
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