A memo obtained by rrspin.com shows that Coastal Lumber Company is trying to reopen once it has secured alternative financing options.

Deteriorating market conditions in July forced an unexpected closure of the entire company, not just the Weldon facility.

“Coastal has identified the optimal manufacturing, product and service mix to best meet our customers' needs and desires, and we have been aggressively transforming our business to achieve that optimal mix,” the memo from Victor C. Barringer, president and CEO, said. “And Coastal's bank, Branch Banking & Trust, has been fully supporting our transformation, until just recently.”

The memo continues that in late July, “As market conditions deteriorated, BB&T suddenly decided that it would no longer support Coastal's strategic reorganization. Instead, it asked Coastal's owners to make certain concessions that they were not willing to make. BB&T then directed Coastal to obtain alternative financing within a very short time frame.”

The memo says that as of August 11, Coastal has been unable to secure a firm commitment for alternative financing. BB&T has therefore directed Coastal to terminate all of its employees and cease operations as of the end of the day today, Friday, August 12, 2011.”

Barringer said in the memo Coastal has no choice but to comply with BB&T's demands. “Coastal will, however, obtain alternative financing and resume doing business as soon as possible. And when we do, we will be financially stronger, much better positioned, and even more capable of providing the quality and service our customers have come to expect from Coastal.”

In the beginning of the memo, which was sent to customers and suppliers, Barringer says, “Our economy's prolonged downturn and its impact on our industry in particular has been profound. Never before has our industry endured such a persistently negative pricing environment. Unfortunately, no one expects a rapid recovery.”

The memo praises the employees of the company, saying, “Coastal Lumber Company has survived this recession primarily because of our employees' perseverance, fortitude and adaptability. And that is what will drive Coastal's success in the future.

“We deeply regret any adverse affects that our temporary absence from the market will have on our employees, customers and vendors.”

Meanwhile, the Inter-Mountain of Elkins, West Virginia, reported today that two Randolph County government bodies are lending their support to help ensure Coastal Lumber Company and its Dailey operation reopens the doors to foster a better business climate for all county operations.

Randolph County Development Authority Executive Director Robbie Morris told county commissioners during public comment at their meeting Tuesday evening that there has been both "positive and negative" news recently regarding businesses.

Although ground was recently broken for the Roaring Creek Coal Company at Ellamore, which will "make quite an impact" on the area, Morris said, it was followed by the "somber news" about the closure of Coastal Lumber Company. Morris explained that since he assumed the role of RCDA executive director in July he has been meeting with businesses related to the timber industry and hearing their concerns.

"While we can't necessarily play a role in the global economy and things that are causing the timber industry problems, there are a lot of things that we can do and there are things on the table that the development authority is working on," Morris said.

Last week the paper reported the economic climate for the hardwood industry has led to a blow in employment in Randolph County. Officials with the Virginia-based Coastal Lumber Co. announced to its employees Friday that it would cease operations at all of its locations, including the Dailey yard.

The closure went into effect Friday at the close of business.

The Dailey yard employed 60 people.