A lender has seized the inventory and equipment of Bloch Lumber and will auction the Chicago-based wholesale dealer's assets on Dec. 29, according to a published legal notice in the Chicago Tribune and comments from an attorney for the lender.
The legal notice said The PrivateBank and Trust Co. will sell at a public sale on Dec. 29 all the inventory, accounts, equipment, documents, letter-of-credit rights, and other intangibles of Bloch Lumber Co. Attempts by ProSales to reach Bloch officials were unsuccessful.
"The inventory consists of lumber which is located at 26 locations in 17 states," the legal notice reads. "The Secured Party [i.e., PrivateBank] has received an offer to purchase certain general intangibles for $100,000, certain accounts for 90% of the face value thereof and certain inventory for 50% of the book value."
Gary Segal, an attorney in Chicago for the Dykema Gossett law firm, told ProSales that this isn't a bankruptcy but rather a situation in which "a lender is exercising its right under a loan agreement" to take materials that had been pledged as security for a loan.
According to Bloch's website, the company was established in 1959 and has offices in Colorado, North Carolina, Ohio, Oregon, South Carolina, and Virginia aside from its headquarters in Chicago."We ship from warehouses in 19 states across the United States," the company's website states. "A distributor of North American lumber and panel products, our company has gained a reputation for providing the most reliable, low cost and innovative system of forest products distribution."