Besse Forest Products Group property up for sale
ESCANABA — Six sawmills in Michigan and Wisconsin that were once a part of Besse Forest Products Group are officially for sale, but the clock is ticking for interested buyers, who must submit their sealed bids by Oct. 31.
The mills — located in Gladstone, Baraga, and Wisconsin’s Goodman, Mattoon, Rice Lake, and Ladysmith — are available individually, in multiples, or as a package of all six. According to the listing information from auction company James G. Murphy Co. and asset liquidation company HyperAMS, each mill is still equipped with “state-of-the-art industrial machinery” and offers “turnkey operations with a well established customer base” for any buyer who plans to reopen the facilities.
The listing brochure goes on to say that the 12,500-square-foot office space at the Gladstone veneer processing mill and the 42,000 square feet of buildings at the Baraga green lumber saw mill are currently leased. No other properties are indicated as having tenants.
“While we are focused on turnkey bids until the October 31st deadline, parties interested in making separate offers on the real estate or equipment individually are also welcome. However, we will prioritize turnkey offers and revisit individual offers after the October 31st date,” James G. Murphy Co. noted.
Bidding sheets and additional information about the mills are available at murphyauction.com/buy_now. All bids must be returned by 4 p.m. CST Oct. 31.
The sales are the result of a string of events that began with the sale of the Gladstone-based Besse Forest Products Group to Hoffmann Family of Companies last March, ending nearly 60 years of local family ownership. At the time of the acquisition, HFOC said the mills would add to the multi-sector conglomerate’s wood products manufacturing branch. Greg Besse was kept on to continue in his role as CEO of the Besse Forest Products Group, overseeing the entire operation.
“We are excited to partner with Besse as they enter a new chapter under the Hoffmann Family of Companies umbrella,” said Geoff Hoffmann, Co-CEO of HFOC in a press release announcing the sale. “Our commitment to growth and excellence in manufacturing drives every decision we make. With the acquisition of Besse Forest Products Group, we’re not just expanding our footprint but building on a legacy that spans generations.”
In August, just a few months after the sale, three Besse plants in Wisconsin shut their doors. On Aug. 1, notices were sent out stating that the plants in Matton, Rice Lake, and Goodman, Wis. would close Aug. 2.
“We are sorry we were not able to give you more notice. However, due to an unprecedented industry downturn, it has recently become clear to the company that the revenues of the company will no longer support its operations. After exploring restructuring alternatives, we have determined that Goodman Veneer and Lumber will cease operations. Therefore, we are providing as much notice of the closing as is practicable in the circumstances, pursuant to federal and state WARN laws,” the notice announcing the closure of the Goodman plant read.
In total, 139 people were laid off as a result of the closures.
According to the Green Bay Press Gazette, the North Central States Regional Council of Carpenters (NCSRCC), a union representing some of the Mattoon workers, filed a complaint with the Wisconsin Department of Justice on Aug. 2. The union says the notices were a violation of the Wisconsin’s Business Closing and Mass Layoff Law, which requires 60 days notice of an employment site being shut down if the company employs 50 or more people in Wisconsin.
Within days of the Wisconsin closures, numerous reports were received by the Daily Press indicating that Besse Forest Products’ Gladstone location was vacant. Multiple requests for comment from HFOC and Besse Forest Products Group went unanswered.
“All the employees lost their jobs over the last month or so,” said Delta County Commissioner Steve Viau during the Aug. 26 Delta County Board of Commissioners meeting.
Viau, who also serves on the Michigan Works! board, encouraged the displaced workers to seeks assistance from Michigan Works! for vocational training, resume assistance, and job searches.
“Some of them have been there for 25 years. I had one just call me up and he’s just devastated,” said Viau.
On Sept. 5, Besse Forest Products Group was sued in the US District Court for the Western District of Michigan by Fifth Third Bank, National Association, for a breach of contract. The following day, the federal court appointed a receiver for Besse Forest Products Group’s assets, which was announced in a letter sent to creditors including the Daily Press.
The receiver then began the process of selling the company’s assets, and the six mills were placed for sale.