Hartland firm loses credit line Irving Tanning to file for bankruptcy

BANGOR – Irving Tanning Co. of Hartland announced Friday that it will file for Chapter 11 bankruptcy after learning its primary source of capital funding, Banknorth NA, pulled its investment.

The company, which is a leading supplier of leather to global footwear, handbag and other leather goods industries, employs more than 250 people at its facility in Hartland.

Those jobs are safe, though, according to Michael Fagone of Portland, attorney for Irving Tanning.

“Banknorth has provided us with a revolving line of credit since August 2002,” Fagone said. “When they decided not to extend further credit, we had no choice [but to file for bankruptcy].”

Following a hearing in U.S. Bankruptcy Court in Bangor, Fagone said that Irving Tanning is in negotiations with a new group of potential investors. He declined to name them, but said the decision has not affected customers or business as of yet.

“We’re still taking new orders … customers are happy,” he said.

If the new investors acquire the business, they would recapitalize it and continue operations at the existing facility, Fagone said.

Irving Tanning has another hearing scheduled for Tuesday, March 22, in U.S. Bankruptcy Court.

Gov. John Baldacci and the Finance Authority of Maine have supported the company’s effort to preserve its business, according to a statement released by Irving Tanning CEO David Middleton.

Middleton was not available for comment. Fagone said all the employees were paid and the company is running temporarily from cash collateral on existing orders.

Irving Tanning’s annual sales top $65 million.