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

ROCKIN’ A HARD PLACE: SPIN Café will finally get its spin

O ak Harbor’s SPIN Café is about to get the spin cycle… Continue reading

Building a North Whidbey Hearts & Hammers

Home-repair nonprofit extends its helping hand

Clothing event for those with challenges

Nonprofit giving brand-name clothes to those with special needs

Support is great, but WAIF still has its critics

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

New Indian restaurant opens on Pioneer Way

Gary Purewal and his traditional clay oven have come to give Oak… Continue reading

Pooper Troopers cleaning up a storm

These troopers respond to one specific type of problem — and it’s… Continue reading

Merchants work together to brighten girl’s Christmas

It was a whimsical guitar that caught a little girl’s eye, and… Continue reading

Season’s Eatings

Festive recipes to keep your holidays merry and bright

Whidbey Golf Club board names new officers

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

New cellular sales store opens in Oak Harbor

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

Hits lead to drop in WhidbeyHealth Sept. revenue

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