Woodtex company files for bankruptcy

Nashville, Tenn.--Riverwood Cabins, a division of Woodtex, filed for Chapter 7 Bankruptcy, Monday, Feb. 10, leaving customers with deposits at both businesses questioning their next steps. While the cabin maker has the headquarters of the business in Tennessee, the local facility on Route 14 in Himrod has shown the expansion of the business over the years.
As of Friday, Feb. 28, the Riverwood and Woodtex operations look very different. The north section of the Himrod property, which recently served as a cabin showroom and storage area, was empty. Lumber racks on the exterior of the building were bare and the garage doors closed. The neighboring Woodtex show area still had sheds in-stock but significantly reduced from their typically packed lot.
The Observer is aware of two customers of both businesses who have either been delayed after significant deposits were made, or not received finished sheds in the timeframe they were promised. Calls to the Himrod sales center went directly to voicemail, Monday, March 2.
The Tennessean, a Nashville daily newspaper, has reported more than 60 people are listed in the bankruptcy filings.
A notice posted by Riverwood Cabins said creditors should have received a notice by Monday, Feb. 24 for further information about the bankruptcy process.
The statement also included a comment by owner Kent Lapp saying, "Because of continuing operating losses, and the departure of some key executives, I resumed the role of CEO for Riverwood late in 2019. At that time, Riverwood was experiencing a severe shortage of working capital. During 2019, I caused a substantial amount of fresh capital (much of which was derived from my personal assets) to be infused into Riverwood, but this proved inadequate to meet the need, and Riverwood was forced to cease operations in late January, 2020."
He added, "Naturally, I regret this very much, not only because I have lost my entire investment in Riverwood, but also because I, and my parents before me, have been dedicated to this line of work for nearly 40 years, and I know this will cause financial loss for Riverwood's many fine customers and vendors, and loss of jobs for our many valued employees."
Woodtex has been in operation since 1983 and has expanded from sheds to garages, cabins, outdoor structures and on-site built projects.