Chesapeake company files for bankruptcy

NORFOLK, Va. (WAVY) - Chesapeake Hardwood Products Inc. has filed for Chapter 11 bankruptcy protection.

The Chesapeake-based company listed $13.6 million in liabilities and $6.1 million in assets in its petition, which was filed last week in U.S. Bankruptcy Court in Norfolk.

Chesapeake Hardwood's liabilities include claims for severance payments by more than 120 former workers who lost their jobs when the company closed its plywood plant in Chesapeake in 2008.

The company attributed its financial decline to the downturn in homebuilding. Chesapeake Hardwood produced plywood for cabinets, wall paneling and commercial applications.