'It's a shame': Royalty Hardwoods inventory sold off in auction
The eastern P.E.I. wood manufacturer went into receivership in 2018
A 25-year-old wood-manufacturing company in eastern P.E.I. has been sold off in pieces.
Tools, lumber and machinery at Royalty Hardwoods were sold to the highest bidder in an effort for lenders to recoup some of their money.
The business went into receivership in 2018 and at that time the company employed about seven people — four full-time and three part-time employees
The company was in debt to several lenders, and owed about $1.3 million to the P.E.I. government.
The wood manufacturer in Pooles Corner was opened in 1994 by Martinus Rose. At its height, people at the auction said Tuesday, it grew to be a significant employer in the area and served international clients.
'It's a shame'
People at the auction remembered the business in its prime as a local source for lumber and jobs.
"It's a shame," said Rose, the former owner. "I feel bad because we built the business up."
Sometime around 2015 the business changed hands. It was bought by New Brunswick businessman Karim Bhibah.
In 2018, the company closed.
According to the receiver, the company was widely marketed in Atlantic Canada but offers on the property and business were not acceptable.