Kyle Jensen / The Record — Interstate Label Company, in Freeland, filed for Chapter 7 bankruptcy on June 30.

Longtime Freeland label manufacturer files for bankruptcy

Interstate Label Company, the longtime label manufacturer in Freeland, filed for Chapter 7 bankruptcy on June 30.

Company’s President Cliff Bjork said the business had struggled for years so he decided to liquidate its assets. He purchased the company from Martin Schmidt in 2005, who started Interstate Label in 1971.

“Business had declined since 2008 with the fall of the economy,” said Bjork this week. “It was overcapitalized, so it got into financial difficulties.”

Bjork sold the property, which is located on Main Street in between Harbor Avenue and Newman Road, on May 17 to All Island Storage for $1.1 million. The property is 3.04 acres, and the industrial light blue building which housed the label company is 16,000 square-feet, according to the Island County Assessor’s Office’ website.

Although the space appears well-suited for a storage company, All Island Storage owner Nathan Davis said he doesn’t plan to open up another branch of his business.

“We have no plans of storage development there, it was just a real estate investment,” Davis said.

After filing for bankruptcy and selling the property, Bjork now is focusing on his other label company, Birch Labels. It’s located in the same building he sold to Davis; he’s renting 6,000 square feet of space. As the sole proprietor of Birch Labels, Bjork purchased some of Interstate’s contents and printing equipment.

Bjork says Birch Labels offers the same services as Interstate Label Company.

When Bjork first purchased the business in 2005, he estimates the company’s annual revenue was between $2-$2.5 million. At its peak, he says Interstate employed as many as 20 people.

The company employed six people when the company filed for Chapter 7. Bjork added “many” of the employees have been rehired by Birch Labels.

More in Business

Support is great, but WAIF still has its critics

Debating risks vs. benefit of ‘enriching’ dogs’ lives

Farmer and Vine offers more than wine

The hosts of a new wine bar on Whidbey invite guests to… Continue reading

Pooper Troopers swoop in, scoop up

New pet waste removal business cleans yards across Whidbey Island

(Photo by Laura Guido/Whidbey News Times)
Season’s Eatings

Recipes to keep the holidays tantalizing

‘Flying Bear’ offering last-minute wreath-making

Langley shop filled with greenery for the season

The wonders of Whidbey

More than 60 artists and local producers represented

Whidbey Telecom adding DISH

Whidbey Telecom announced that it has added DISH to its list of… Continue reading

Healing Circles offers sanctuary and support

The people sitting in a circle of comfortable chairs may talk about… Continue reading

Training slated at mussel rafts

Penn Cove Shellfish employees will participate in oil spill training Friday near… Continue reading

SICBA holds home tour

Skagit/Island Counties Builders Association will hold its 12th annual SICBA Home Tour… Continue reading

Gemkow now McClure Custom Homes

Gemkow Construction has changed its name to McClure Custom Homes, LLC nearly… Continue reading

Photographer wins Whidbey Telecom’s cover art contest

Whidbey Telecom has announced the winner of its 2018-19 Directory Cover Art… Continue reading