A Saco dyehouse, which expanded in 2017 with the hope of reviving the state’s textile industry, has closed down owing to property dispute and financial problems. The dyehouse has stopped the supply chain for other textile companies in the New England area.
In February, Maine Textiles filed for Chapter 11 bankruptcy in an attempt to settle more than US $ 1 million in outstanding debts. Chapter 11 bankruptcy is for businesses that seek to restructure their debt while remaining in operation.
Maine Textiles International hopes to stave off eviction through bankruptcy, while it was working to restructure its debt. Its co-founder Claudia Raessler cited problems related to an equipment upgrade and expansion effort as the primary reasons for its downfall. The business is up for sale and one prospective buyer is considering it, Claudia said.
Raessler added that the company, which did business as Maine Dye & Textiles, effectively closed down on 1 May.
Further on the same, she added that the company laid off its entire staff of 12 people, including several first-generation immigrants to Maine. Also, the customers will have their dyed and undyed textile fibre supplies returned to them, and will have to seek out another dyehouse.
The company was also engaged in a separate legal dispute with its landlord, developer Kevin Bunker of Portland-based Developers Collaborative, who sought to evict the business from his property for failure to make timely payments.
Maine Textiles had sought to handle the landlord-tenant dispute through bankruptcy in a way that would have allowed the company to retain its lease. It lost its court battle against the landlord, forcing the company to shut down and rendering its Chapter 11 proceeding moot. The bankruptcy case ultimately was dismissed, she said.