HUNTINGTON, Ind. (AP) -- A fireplace maker may lay off workers or shut down its northeastern Indiana factory -- news that comes less than a year after the company announced it would add 200 jobs.
CFM Corp. sent notice to the city that there is ''probability of either mass layoffs or of complete plant closure'' because it filed for bankruptcy on Wednesday. The facility employs about 390 people.
The company said layoffs or closure may occur between June 15 and July 31.
Bill McCann, a CFM human resource manager, wrote in his letter to the city that the company had filed for Chapter 11 bankruptcy protection from creditors in Canada, where the firm is based, and the United States.
In rare cases, bankruptcy protection can help create a stronger and more prosperous company through restructuring, said Mark Wickersham, director of Huntington County United Economic Development.
''It's never good news, but it isn't always an absolute guarantee that the end is coming either,'' Wickersham said.
In 2004, the company said it planned to close the Huntington plant, but a private group bought CFM a year later and the new management reconsidered those plans. In June, the company announced that it would add more than 200 jobs and spend nearly $4.5 million on equipment and infrastructure for the plant, which has been open for more than 100 years.
The news comes after announcements by other companies to close area facilities.
''I think everyone understands that this is a very difficult time for the economy,'' said Rep. Dan Leonard, R-Huntington. ''And it is going to take time to turn this around.''
