Correct Building Products LLC, a 10-year-old composite decking company in Biddeford, has filed for bankruptcy and says its only salvation will come from a proposed sale to a subsidiary of Wayne, N.J.-based Building Materials Corporation of America.
The company filed for Chapter 11 bankruptcy on July 2. Listed as one of its largest creditors is the Maine Technology Institute, which it owes roughly $250,000 from a development award. Martin Grohman, the company’s co-founder and chairman of the board, said in a prepared statement that the sale and associated bankruptcy filing will position the company for greater sales of its specialty deck material and fuel future growth in jobs and manufacturing expenditures. To speed the transaction, Correct has asked the bankruptcy court to quickly approve a sale to Lobster Acquisitions LLC under section 363 of the U.S. bankruptcy code. The sale price is $2.5 million, according to its court filings.
If the sale is not approved, Peter Anania, Correct’s president, said in an affidavit that “it will mean the end of the business and result in a loss of jobs.” The company currently employs 42 people, according to its court filing.
The company said the sale to Lobster Acquisition has the support of significant creditors, customers and employees. The company reported a 40% increase in sales last summer over its 2006 sales for the same period before the slump in construction activity prompted the layoff of 25 Correct workers last October.