HPG International Inc. sent its workers home March 24 as its financing ended. The company continues to look for a buyer.
We're still in Chapter 11. Our funding source decided not to continue and we were forced to shut down yesterday. Unfortunately we have a lot of orders backlogged, but we can't finance the purchase of raw materials, said Chairman John Dellevigne in a March 25 telephone interview.
The Mountaintop, Pa., company makes PVC film and sheet that is used in roofing, swimming pools and laminating products. It had temporarily closed the week of Jan. 21, but reopened about a week later after voluntarily filing for Chapter 11 protection from creditors. It received a debtor-in-possession loan from Bank of America to continue. At that time, it had about 100 workers.
A year ago, HPG employed 200.
We have a very loyal group of customers, said Dellevigne, noting that during February the company had been profitable and sold about $3.5 million worth of products. That level of sales is down significantly from 2008, when the company averaged about $5 million per month. But with the lower costs of raw materials this year, HPG is able to turn a profit, he said.
Last year HPG ran into difficulties because of a spike in resin costs that it was not able to pass on to its customers.
Dellevigne said the company is looking for a new lender.
We're not quite at the end of the road, but it is close, Dellevigne said. It is a difficult time to find funding, but there has been interest in the company. He is hopeful that a buyer will emerge.
The company is working with local and state officials, who also hope to find a solution to keep people working.