Rusty Shaft
Cadet
- Joined
- Oct 28, 2010
- Messages
- 7
BELLINGHAM - Aluminum Chambered Boats announced on Monday, Nov. 15, that it is ceasing operations.
Interim president Tom Latham said the recession, mounting debt and its inability to make a profit contributed to the closure. ACB attempted to secure a strategic investment partner to restructure the company but has not been successful to date.
ACB, which sold boats to the military, law enforcement agencies and the recreation industry, was a significant employer for 12 years on the Fairhaven waterfront.
"It is very sad to see such a skilled workforce (idled)," said Bill Geyer, chairman of the board at ACB, which has more than 200 individual stockholders. "This workforce put together a superior product, and over the years it knocked heads with some very big companies to land contracts. We were hoping it would be a successful company, but it was not making a profit."
At this point the company and its stockholders will evaluate what to do next, including aggressively continuing a search for additional capital. They should have a clearer picture about whether the company can be saved in the next two weeks, Latham said.
About 35 employees were impacted by Monday's announcement. At its peak four years ago, the company employed 110 people. The current workforce was sent home Monday to await further updates, Latham said.
Founded in 1998 by Larry Wieber, ACB began its growth spurt after the Sept. 11 terrorist attacks when it became qualified to sell boats to a military intent on beefing up its waterfront security. Perhaps the company's biggest contract prize came six years ago, when it landed an $18 million contract to supply 66 boats to the U.S. Marine Corps.
Throughout 2010 the company struggled, shrinking its workforce and making leadership changes. In March Wieber resigned his position as CEO but remained on the board of directors until this summer. Jim Moore, who had been hired in 2008 as president, took over the CEO position. He held the position for four months before leaving the company. Latham, who had been hired as director of operations in March, became interim president in July.
It appeared the company was getting back on track in May, when it was announced ACB won a contract with the U.S. Coast Guard to build up to 80 boats, adding $37.7 million in revenue. However, Latham said the contract had some issues in how it was negotiated and did not offer the financial benefits they were expecting.
"The company didn't bid appropriately for that contract," Latham said.
Reached by phone, Wieber said he cut ties with the company last summer because he disagreed with where it was going.
"It's a tragedy that it ended this way," Wieber said. "It was my dream to establish this company in this community. It didn't have to end this way."
ACB also has a significant contract with the U.S. Army to build boats, but it was still in the prototype testing stage, and production wasn't expected to take place until at least 2014, Latham said.
The company was on the Port of Bellingham's commission meeting agenda for Tuesday, Nov. 16, proposing an eight-year lease renewal, contingent on ACB entering into a financial agreement with another regional boat manufacturer. ACB occupies multiple buildings in the Port's Fairhaven Marine Industrial Park.
"Aluminum Chambered Boats has been a valued Port tenant since 1998," said Port Executive Director Charlie Sheldon in a written statement. "We knew they have been facing extreme economic difficulties and we have been working with them to try to keep this company and these jobs in our community."
http://www.bellinghamherald.com/2010/11/15/1723301/bellinghams-aluminum-chambered.html
Interim president Tom Latham said the recession, mounting debt and its inability to make a profit contributed to the closure. ACB attempted to secure a strategic investment partner to restructure the company but has not been successful to date.
ACB, which sold boats to the military, law enforcement agencies and the recreation industry, was a significant employer for 12 years on the Fairhaven waterfront.
"It is very sad to see such a skilled workforce (idled)," said Bill Geyer, chairman of the board at ACB, which has more than 200 individual stockholders. "This workforce put together a superior product, and over the years it knocked heads with some very big companies to land contracts. We were hoping it would be a successful company, but it was not making a profit."
At this point the company and its stockholders will evaluate what to do next, including aggressively continuing a search for additional capital. They should have a clearer picture about whether the company can be saved in the next two weeks, Latham said.
About 35 employees were impacted by Monday's announcement. At its peak four years ago, the company employed 110 people. The current workforce was sent home Monday to await further updates, Latham said.
Founded in 1998 by Larry Wieber, ACB began its growth spurt after the Sept. 11 terrorist attacks when it became qualified to sell boats to a military intent on beefing up its waterfront security. Perhaps the company's biggest contract prize came six years ago, when it landed an $18 million contract to supply 66 boats to the U.S. Marine Corps.
Throughout 2010 the company struggled, shrinking its workforce and making leadership changes. In March Wieber resigned his position as CEO but remained on the board of directors until this summer. Jim Moore, who had been hired in 2008 as president, took over the CEO position. He held the position for four months before leaving the company. Latham, who had been hired as director of operations in March, became interim president in July.
It appeared the company was getting back on track in May, when it was announced ACB won a contract with the U.S. Coast Guard to build up to 80 boats, adding $37.7 million in revenue. However, Latham said the contract had some issues in how it was negotiated and did not offer the financial benefits they were expecting.
"The company didn't bid appropriately for that contract," Latham said.
Reached by phone, Wieber said he cut ties with the company last summer because he disagreed with where it was going.
"It's a tragedy that it ended this way," Wieber said. "It was my dream to establish this company in this community. It didn't have to end this way."
ACB also has a significant contract with the U.S. Army to build boats, but it was still in the prototype testing stage, and production wasn't expected to take place until at least 2014, Latham said.
The company was on the Port of Bellingham's commission meeting agenda for Tuesday, Nov. 16, proposing an eight-year lease renewal, contingent on ACB entering into a financial agreement with another regional boat manufacturer. ACB occupies multiple buildings in the Port's Fairhaven Marine Industrial Park.
"Aluminum Chambered Boats has been a valued Port tenant since 1998," said Port Executive Director Charlie Sheldon in a written statement. "We knew they have been facing extreme economic difficulties and we have been working with them to try to keep this company and these jobs in our community."
http://www.bellinghamherald.com/2010/11/15/1723301/bellinghams-aluminum-chambered.html
