Weaber Inc. files for bankruptcy protection, continues its operations

Just weeks after it announced plans to lay off 145 employees, close its South Lebanon Township distribution center, and consolidate operations at its Mount Wilson plant, local hardwood lumber manufacturer Weaber Inc. has filed for Chapter 11 bankruptcy protection.

Read More: Report: Weaber Lumber to lay off 145 workers at Lebanon distribution center

Weaber announced earlier this summer that it would be closing its ChoiceWood subsidiary in Titusville, Crawford County, eliminating 46 jobs.

A Chapter 11 bankruptcy does not mean a company is going out of business. It stops creditors from trying to collect debts while the company keeps operating and files a plan to reorganize its operations.

On Friday, Aug. 15, Weaber spokesperson Mary Ann Sabo told LebTown that, “as part of our ongoing restructuring, we have taken the next necessary step and filed for protections under Chapter 11. This will allow us to reorganize our finances and emerge as a stronger, more competitive company.”

“While we go through this process,” she continued, “we will maintain our current business operations. Our customers and employees should notice no change in our operations. We are confident in our path forward and are committed to the successful completion of this transition.”

Sabo told Biznews PA, in July that, “as with so many other manufacturers, we have been struggling with challenges in the housing market and with the impacts of inflation. Home sales are down while mortgage rates remain high. Continued uncertainty in the overall economy has prompted consumers to delay building or purchasing a new home or renovating an existing home.”

In the filing, the company said that it does not import lumber from outside the United States and is not exposed to tariff duties. Weaber describes itself as a “vertically-integrated hardwoods product company specializing in the production of oak and poplar trim boards, weathered wallboards, unfinished oak flooring, mouldings, stair products, and closet poles.”

Weaber filed its voluntary petition for bankruptcy relief on Aug. 1 in the U.S. Bankruptcy Court in Harrisburg, disclosing that its 20 largest unsecured creditors were owed a combined $4,395,758. Those creditors include Met-Ed and Lebanon’s Meyer Oil Co.

Unsecured creditors are owed money but don’t have a security interest, such as a mortgage or lien against property, to claim if their debtor doesn’t pay. Unsecured creditors generally face a higher risk of not getting paid, since secured creditors are first in line.

Weaber began as a sawmill founded by Walter H. Weaber in 1941, and has been headquartered at 1231 Mount Wilson Road in South Annville Township since. Walter’s son, Galen, took over the business in the 1970s and oversaw the company’s expansion and modernization. Galen’s son, Matthew, currently heads the company. Matthew
led a recapitalization of Weaber Inc. in 2015 that put a controlling interest in the company back in the Weaber family and expanded from the lumber industry into consumer markets.

Read More: From humble beginnings, Weaber Lumber continues to build

The company opened a downtown Lebanon career center in September 2020 in response to a need at the time for more employees. It ran an employee shuttle bus from the center to its Mount Wilson road mill. The center appears to have been closed for several months.

Read More: Weaber opens Downtown Lebanon career center, adds shuttle between city & mill