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Press Release:
January 30, 2009
Blenko Glass Company announced today that it is shutting down production
and is discussing with its counsel whether it should consider filing for bankruptcy.
The Blenko Visitor’s Center will continue to remain open. The Milton
based manufacturer of hand made glass was sued by Big Two Mile, its
former gas supplier, four years ago because of a disagreement about the
payments due for gas used at the factory. A court found in favor of Big
Two Mile and entered a judgment against Blenko for more than $500,000 in
September of 2005. Several proposals for settlement of the case were made
by Blenko; none of the proposals was accepted.
Over the past three years members of the Blenko Family were in contact
with members of the Maier Family who are the owners of Big Two Mile.
Blenko was led to understand that Big Two Mile would not take steps to
shut down Blenko. Relying on those assurances Walter Blenko of Pittsburgh
PA and Don Blenko of Wellesley MA invested more than 2 million dollars in
Blenko in an effort to return the company to profitability. In recent
months the company’s losses had been reduced and Blenko management was
looking forward to seeing a positive cash flow in the company’s
operations.
On January 15, 2009, Big Two Mile took steps to seize “all amounts,
deposits, and moneys” in the Blenko Glass bank accounts including its
payroll and withholding accounts. Blenko first learned of Big Two Mile’s
action on January 23, when Blenko’s bank reported that the bank accounts
had been emptied.
Blenko had issued a check on that day to pay for gas that it used in its
glass making furnaces. When Blenko learned its funds had been seized it
was able to recover the check which was already in the mail. Because of
nonpayment Blenko’s gas supplier has refused to supply gas for the glass
making process after January 31, 2009. Blenko has therefore shut down its
furnaces and some of them will be destroyed due to the loss of heat.
Blenko employs approximately 50 employees. Walter Blenko, President of
Blenko Glass, said “I want to thank and pay tribute to the many loyal
employees of Blenko Glass who worked diligently and faithfully against
bad economic conditions to keep the company operating and producing world
renowned Blenko Glass up until the last day.”
For further information please contact: Walter Blenko, President, or
Katie Trippe, Assistant Vice President, at (304) 743-9081.
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