Coastal Lumber goes out of business
CHARLOTTESVILLE, Va. (AP) — Coastal Lumber Co. said Tuesday that it was going out of business, laying off more than 350 people in Pennsylvania, West Virginia and two other states.
In a statement to customers and suppliers, the Charlottesville-based company blamed the “prolonged downturn” in the economy and the company’s inability to obtain financing for a plan to keep it afloat.
But the statement said that the company is still pursuing alternative financing in hopes of resuming business.
Coastal Lumber said the layoffs were deepest in West Virginia, where the company employed nearly 200 in five locations. It also employed 67 workers in North Carolina, 68 in Pennsylvania, six executives in Virginia and 30 companywide in sales, accounting, clerical and transportation.
Coastal operated a yard in Hopwood.
However, HeraldStandard.comn could not reach anyone at the local facility or its headquarters.
Coastal Lumber said it had pursued a new business plan, but its bank would not support its proposed reorganization.
“Instead, it asked Coastal’s owners to make certain concessions that they were not willing to make,” the statement said of the bank.
The company was unable to immediately secure new financing, which led them to close the locations Friday.
WorkForce West Virginia announced it would provide support services Wednesday to laid off Coastal Workers in Aurora, W.Va.
“Our goal is to help people move on to the next step in their lives and get them back into the workforce as quickly as possible,” said Russell Fry, acting executive director of WorkForce West Virginia.