Manistique Papers Inc. announced Friday that it will be filing for bankruptcy, ceasing production, and looking for a buyer. MPI has been in financial trouble since January 2011, when the cost of raw material increased one million dollars per month. Although the company has been making loan payments on time, its lender informed MPI it would no longer provide capital.
According to director and General Manager, Jon Johnson, when a search for other sources of financing came up empty, MPI had no other choice but to declare bankruptcy. Johnson added that the company is for sale, and he is hopeful a new owner will reopen MPI.
The company starting producing papers in 1920. MPI became the first manufacturer of recycled content newsprint in North America. They've printed on 100 percent recycled content since 1984.
Manistique's City Manager, Sheila Aldrich, says Michigan Works! will be on hand to train and council employees affected by the closure.