Type_webhead_here Chesapeake Corp. winding down in Richmond
Chesapeake Corp. said it has completed the previously announced sale of its business units to an investment group and is winding down its Richmond operations.
Chesapeake, a specialty packaging maker with a 90-year history in Virginia, filed for Chapter 11 bankruptcy protection in December and proposed to sell its subsidiaries to pay creditors after the company could not overcome its heavy debt load and the economic downturn.
In March, U.S. Bankruptcy Judge Douglas O. Tice Jr. approved the sale of the company's business units as a going concern to a group of investment firms for $485 million.
With its business units sold, the former parent company in Richmond is changing its name to Canal Corp., which is essentially a shell company. The headquarters office is now in a "wind-down" phase, J.P. Causey, the company's general counsel, said today. About 20 employees remain at the local office after several departed last week.
"That will continue to be reduced quickly over the next 30 to 60 days," Causey said.
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