In a major financial move affecting East Texas, longtime Henderson business owner Billy J. Townley has filed for Chapter 11 bankruptcy protection for three of his companies — TLC Transportation, Townley Pallet Manufacturing, and W.D. Townley and Son Lumber Co. These filings were submitted to the U.S. Bankruptcy Court for the Northern District of Texas.
A Family Business Facing Tough Times
Founded in 1943, W.D. Townley and Son Lumber Co. is a family-run operation that manufactures pine and hardwood pallets, woodchips, and sawdust, while also providing truck delivery services for its customers. It’s a company that has served the local economy for generations, but now finds itself among the growing list of businesses grappling with rising costs, market shifts, and debt.
TLC Transportation: An Interstate Carrier
TLC Transportation, a trucking company under Townley’s ownership, specializes in pallet hauling and operates as an interstate carrier. According to data from the Federal Motor Carrier Safety Administration’s SAFER website, TLC currently employs six drivers and manages eight power units.
Bankruptcy Details: Creditors and Debt Breakdown
Each of the three businesses lists assets and liabilities between $1 million and $10 million, but the number of creditors and debt amounts vary by company:
TLC Transportation
- Creditors: Estimated under 50
- Top Creditors:
- Regions Bank: $2.97 million
- U.S. Small Business Administration (SBA): $2.97 million
- IRS (Philadelphia): $500,000
Townley Pallet Manufacturing
- Creditors: Under 50
- Top Creditor:
- Commercial Financial Group/Texas (Atlanta): $1.1 million
W.D. Townley and Son Lumber Co.
- Creditors: Estimated between 50 and 99
- Top Creditors:
- Texas Mutual Insurance Co. (Dallas): $156,165
- Service Electric (Kilgore, TX): $108,683
- The Berkshire Group LP (Lake Zurich, IL): $92,313
What Chapter 11 Bankruptcy Means
Chapter 11 is a form of bankruptcy that allows a company to reorganize its finances and continue operations while paying back creditors over time. It’s often seen as a way to restructure debt and prevent a complete shutdown, giving companies a second chance to become financially stable.
Final Thoughts
This development marks a significant shift for the Townley-owned companies that have been staples in the Henderson and East Texas business community for decades. While the future of these businesses remains uncertain, Chapter 11 gives them a window to regroup and potentially recover.
For local employees, customers, and partners, the news is no doubt concerning. But with careful management and a clear restructuring plan, these companies could still find their footing in a challenging economic landscape.