Potomac Supply Corporation has temporarily shut down its Kinsale manufacturing operations.
The building-supply company has fallen on hard times due to the recession, according to a press release sent out yesterday. Its bank advised management on Tuesday that it will be unwilling to continue to finance the company without additional capital investment.
Potomac Supply is pursuing its options to provide the capital required to continue operations. These include new financing, private equity investment, divisional divestitures or sale of the company.
If the company is unsuccessful in finding funding, an additional 168 jobs will be lost. Last month the company announced the closing of its sawmill, which resulted in the loss of 57 jobs.
Potomac Supply plans to continue serving customers from existing inventories until supplies are depleted.
Potomac Supply Corporation was founded in 1948 and is a diversified forest products company with 5 manufacturing operations: wood treatment, sawmill & planer mill, wood fuel pellet, wooden pallet, and treated fencing & decking.
It has been buying $35 million of standing timber and selling $150 million worth of wood products annually.