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Lincoln Logs files bankruptcy

Pretty much everybody have now heard about Lincoln Logs’ bankruptcy filing or Chapter 11 reorganization, as the politically correct term goes. Their attorney said intention is not to lay anyone off and to continue operations as usual while negotiating with creditors.

DOUBT
I don’t know about you guys, but if I would be in financial trouble and asked refinancing from my creditors without changing my consumption habits… well, I doubt there would be any reorganization. Personally I expect to see some jobs go or some asset sales.

SURPRISE
For me it was a surprise to see company as big as Lincoln Logs to hit the brick wall. I know that smaller log home companies have already switched from making log homes into renovations etc.

For the most part, I did expect that fervent log home lovers would have kept the industry going, at least for the big players with good brand names. Guess I was wrong, no matter how dedicated customers you have it all comes down to them also having money.

EFFECT
How would you feel if your supplier told that they are having slight difficulties with creditors? I bet that would make you feel insecure. Are you in the stage of making decision between two manufacturers and having very difficult time choosing one… If the other was Lincoln Logs, your life suddenly became lot easier.

No doubt they will loose orders because of this and if they have difficulties now, just wait few months and they really feel the bit of postponed orders or cancellations. Let’s hope they manage to pull through.

One Response to “Lincoln Logs files bankruptcy”

  1. Tom
    September 23rd, 2008 05:33
    1

    Hey Jarkko…

    It looks like Lincoln Log’s bankruptcy filing is a hot topic today… and with good reason, but such an action for companies and individuals is a different situation. The purpose of Chapter 11 is to help a company get back on its feet. If they were just trying to escape debt they would have folded the company and ceased operations. From where I stand, I think Lincoln is suffering from this real estate crunch and just happens to have less cash available than they need to survive the slowdown in orders and past commitments.

    I commented on this in my blog today also. I don’t know the folks at Lincoln, but I’m assuming they want to continue producing log homes and this filing will help them survive this economic cycle. You can read my comments here: http://www.logcabindirectory.com/blog/?p=199

    As always, a great post… Keep up the great work!

    ~Tom

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