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June 12, 2009

BoA forces Celotex to close Lisbon plant

By The Mainebiz News Staff

More than 50 employees at the Celotex plant in Lisbon are out of work after Bank of America forced the plant into liquidation.

Known locally as Knight-Celotex, the Illinois-based fiberboard manufacturer closed Wednesday and was forced into Chapter 7 liquidation Thursday, the Sun Journal reported. Bank of America agreed to work with the company after CEO Jim Knight resigned, but the bank would not agree to the terms of a new plan and budget developed under an interim CEO.

Once the town's third-largest employer, the company filed for bankruptcy protection in April after the bank froze its accounts. It shut down briefly last summer, and only about half of its workers returned when the plant reopened about a month later. Celotex also had plants in Sunbury, Pa., Marrero, La., and Danville, Va., and employed a total 250 workers, the paper reported.

Reader comments

From Sandra (Wed 7/8/2009 9:04 AM)

I was recently reviewing articles regarding the closing of Celotex plant in Lisbon Falls. I am a resident of Lisbon Falls and as I drive by there almost daily I wonder why either Bank of America or Celotex in Illinois did not quickly think of what to do with the large amount of wood chips and fiberboard that is now sitting rotting in the rain. I am guessing that it was not sold to anyone as it would have been picked up by now. It could have at least been donated to Habitat for Humanity or another deserving organization or even offered to the public here in Lisbon. In the face of local and national efforts to "go green" this is a huge dislpay of wastefulness which is very upsetting in additon to the loss of the plant and jobs!
- Sandra in Lisbon Falls
 

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