Lamson and Goodnow Mfg. takes stock in busy week
Knives hang in the racks of the Lamson & Goodnow store in Shelburne Falls on Wednesday. Recorder/Micky Bedell Purchase photo reprints »
Knives hang in racks of the Lamson & Goodnow store in Shelburne Falls on Wednesday. Recorder/Micky Bedell Purchase photo reprints »
SHELBURNE FALLS — Lamson and Goodnow Manufacturing facilities on Conway Street were bustling Friday morning — two weeks after filing for bankruptcy — with the outlet store filled with customers and a few salaried workers in a warehouse, taking inventory and trying to fill back orders.
“There’s been a good response,” observed Chief Operating Officer James Pelletier, referring to increased sales in the store and new orders from longtime customers.
On Thursday, the company went back to bankruptcy court to get permission to pay wages, salaries and payroll taxes accrued before the bankruptcy petition was filed on Aug. 15. He said the salaried workers still on the premises will now be paid for at least two of the four weeks they’ve worked this month.
Meanwhile, the knife and kitchen-tool manufacturer is waiting for another court date on Wednesday in U.S. Bankruptcy Court in Springfield, when it will file a financial plan and seek permission to obtain a $500,000 line of credit with “debtor-in-possession” financing through a company called DIP Lending LLC.
If the court grants credit permission, the 177-year-old company would be able to start calling some of its 31 laid-off production employees back to work, according to Pelletier.
James Ross Anderson remains the owner of the company. The 18.3-acre property, with seven buildings on it, has been put up for sale for $2.1 million by Cohn & Co. in Greenfield. The company hopes to use the sale proceeds and the company’s future profits to pay off its creditors. The company owes at least $2 million to Newtek Small Business Finance Corp. in New York and another $1.06 million to the US Small Business Administration. Also, it owes roughly $500,000 to unsecured creditors, including $211,000 to TransCanada Hydro Northeast, the largest of these creditors.
Pelletier was hired in April and is part of the company’s new financial team. If the Shelburne Falls land and factory is sold, the company hopes to find a more modern building in western Massachusetts, where it can continue operating more efficiently.
Pelletier said the company would like to keep its retail outlet in Shelburne Falls, but that is not yet a long-term certainty.
You can reach Diane Broncaccio at: email@example.com or 413-772-0261, ext. 277