Longtime Freeland label manufacturer files for bankruptcy

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

The business had struggled for years, so the decision was made to liquidate assets, said the company’s president, Cliff Bjork.

In 2005, Bjork purchased Interstate Label, which was started in 1971, from Martin Schmidt.

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

On May 17, Bjork sold the property, which is located on Main Street, between Harbor Avenue and Newman Road, to All Island Storage for $1.1 million.

The property is 3.04 acres. The light blue industrial building that 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 that isn’t his plan for the building.

“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 said he is focusing on his other label company, Birch Labels. It’s also located inside the Freeland building he sold to Davis; he’s renting 6,000 square feet of space.

As sole proprietor of Birch Labels, Bjork said he 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 said Interstate employed as many as 20 people.

The company had six employees when the company filed for Chapter 7.

Bjork said “many” of the Interstate employees were hired to work for Birch Labels.

More in Business

New cellular sales store opens in Oak Harbor

Cellular Sales, the largest independent Verizon Wireless retailer by volume, has opened… Continue reading

Whidbey Golf Club board names new officers

Whidbey Golf Club’s board of trustees met Nov. 30 and elected new… Continue reading

Hits lead to drop in WhidbeyHealth Sept. revenue

WhidbeyHealth suffered an unplanned budget hit, making September “not such a good… Continue reading

Oak Harbor Motors holds food drive for Help House

Oak Harbor Motors is aiming to “drive out hunger” in its first-ever… Continue reading

Photo by The Everett Herald / 2016
                                Todd Morrow
Island Transit board names choice for executive director

Island Transit’s board of directors picked as its new executive director an… Continue reading

Whidbey Community Foundation awards grants to nonprofits

On Oct. 10, the Whidbey Community Foundation distributed grants to 13 nonprofits… Continue reading

Cary Anderson Team of Keller Williams donates curriculum

The Cary Anderson Team of Keller Williams is donating Ramsey Solutions’ Foundations… Continue reading

Cascade Insurance merges with Leavitt Group Northwest

Leavitt Group has announced that Cascade Insurance Agency has affiliated and merged… Continue reading

Photo by Laura Guido/Whidbey News-Times. Lynn Hyde stands inside the Haller House, a historic home that her nonprofit group recently purchased in order to preserve it.
Group inks deal for one of state’s oldest homes

Nonprofit buys historic Haller House

Furry friends attend doggy daycare

‘Some people call me a hippy dog trainer’

Noe Jose Cafe: Where friends and family eat

Mom’s the secret sauce at brothers’ Oak Harbor restaurant

Photo by Jessie Stensland / Whidbey News Group
                                Island County Sheriff Mark Brown stands in front of the law and justice center.
Sheriff Brown will walk off into sunset

Island County Sheriff Mark Brown’s career in law enforcement will come to… Continue reading