A Petersburg-based lumber company that has been serving builders for more than a century shut down its operations yesterday.
Roper Brothers Lumber Co. blamed the economy for closing its stores and manufacturing operations in seven locations statewide, including Richmond, Lynchburg and Fredericksburg.
"In the midst of an economic storm that has battered our industry and our business, we deeply regret having to take this action," Philip R. Roper III, the company's chairman, wrote to employees.
The company plans to file Chapter 11 bankruptcy protection shortly, he wrote.
"We have concluded that liquidating our assets in an orderly manner will provide the best opportunity for the company to maximize its ability to protect your interests," Roper wrote.
Roper or other executives did not return several calls yesterday seeking comment.
Workers received the letter in paychecks yesterday.
Some also were told on Thursday that the business was shutting down, said Robert Taylor Jr., a director at the company's Taylor Brothers Lumber Co. building supply business in Lynchburg. Taylor is the former president of Taylor Brothers, which Roper bought in 2006.
It is unknown how many total employees are affected.
In 2006, Roper said it employed about 500.
But Taylor said the company has been closing operations and reducing the number of workers in the past year. For instance, Taylor Brothers Lumber had about 80 employees a couple of years ago. It had about 29 workers yesterday.
Taylor said Roper grew too rapidly and took on too much debt.
"They were too leveraged," he said. "Sure the economy was bad, but with the right business decisions several years ago this never should have happened. It is a terrible, terrible mistake."
Taylor said he is concerned for the employees at Taylor Brothers who have been laid off.
"We're just trying to look after the employees that are there, and see what we can find for them," he said.
A number for Roper's Richmond Design Center has been disconnected and the doors were locked at its Tomlynn Street office yesterday. Roper operated a millwork division in Petersburg, a structural component facility and branch offices throughout Virginia.
Its core business was manufacturing interior and exterior doors, roof and floor trusses, wall components and custom stairs.
The downturn in the real estate market appears to have caused some problems for the company beginning in 2008. For instance, Roper discontinued a customer rewards program in July 2008 that included a trip to Rio de Janeiro, Brazil.
Roper cited rising fuels costs, a decrease in sales and a sluggish housing market for discontinuing the program, according to its Web site.
Deputy Business Editor Gregory J. Gilligan, staff writer Emily C. Dooley and the Lynchburg News & Advance contributed to this report.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement