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Structurlam Mass Timber Corp., a Canadian mass timber manufacturer with holdings in Arkansas, announced Monday (April 24) plans to sell the company and file for Chapter 11 bankruptcy.<\/span><\/p>\n According to Monday\u2019s news release, Structurlam has entered into a stalking horse asset purchase agreement (APA) with Mercer International to sell its assets for $60 million.<\/p>\n \u201cI am delighted and grateful for Mercer\u2019s vote of confidence in Structurlam and in its leadership in the mass timber industry,\u201d Structurlam CEO Matthew Karmel said. \u201cIt is especially rewarding given the difficult period the company has had since suspending its operations in Arkansas mid-January, and it will help in normalizing the plant operations going forward.\u201d<\/p>\n In January, the company suspended operations at its 288,000-square-foot Arkansas plant in Conway due to a customer contract cancellation with Bentonville-based Walmart Inc. The company did not initially name the customer that canceled a contract when announcing the plant closure. In response to a question from Talk Business & Politics, a spokesman confirmed that Walmart canceled the lucrative contract.<\/p>\n However, a Walmart spokeswoman said Structurlam\u2019s claim that the retailer was responsible for the partnership ending \u201cwould not be accurate\u201d and offered the following statement.<\/p>\n \u201cWalmart was informed today by Structurlam\u2019s CEO that they suspended operations of their mass timber factory in Conway, AR. While this is a disappointing outcome that impacts many parties, we are proud of the significant financial and operational support Walmart has provided Structurlam since 2019. Walmart remains excited about using mass timber on our new Home Office campus and will continue to seek alternate sources of mass timber for the project. We will use as much material from our home state of Arkansas as feasible.\u201d<\/p>\n Structurlam filed the voluntary reorganization plan on April 21 in Delaware. The company listed between $100 million and $500 million in assets and the same range in liabilities.<\/p>\n According to the filing, the company\u2019s largest unsecured claim is to Walmart ($34 million).<\/p>\n In December 2019, Structurlam announced a $90 million investment in the Conway facility primarily to support one project \u2014 the construction of the new Walmart corporate campus in Bentonville, first announced in 2017.<\/p>\n Officials with Structurlam, based in Penticton, British Columbia, Canada, made the announcement with Gov. Asa Hutchinson and Dan Bartlett, executive vice president of Walmart Corporate Affairs. The new facility was expected to create 130 jobs in a facility once operated by Nucor.<\/p>\n \u201cWe are excited about the technology and the additional opportunities for growth Structurlam brings with it to Arkansas,\u201d Hutchinson said at the time. \u201cThe company\u2019s partnership with Walmart is an example of how this expansion will benefit our state\u2019s timber industry.\u201d<\/p>\n The world\u2019s largest retailer had planned to use more than 1.1 million cubic feet of Arkansas-grown and Arkansas-produced mass timber in its new home office campus in Bentonville, making it the largest campus project in the U.S. using mass timber.<\/p>","protected":false},"excerpt":{"rendered":" Structurlam Mass Timber Corp., a Canadian mass timber manufacturer with holdings in Arkansas, announced Monday (April 24) plans to sell the company and file for Chapter 11 bankruptcy. According to Monday\u2019s news release, Structurlam has entered into a stalking horse … Continue reading