By A.M. Kelley
Superior Catholic Herald

Bankrupt paper mill has a buyer

PARK FALLS -- After months of worry and even panic, Park Falls finally has good news. Its bankrupt paper mill, which let its entire workforce go in March sending tremors though the small town, has a buyer.

An offer was made on June 23 by a group of investors led by William "Butch" Johnson of Johnson Timber in Hayward.

In a telephone interview with the Catholic Herald, the vice president of Johnson Timber, Randy Stoeckel, verified the deal.

The closed SMART Paper mill is slated to become Flambeau River Papers on July 10 pending one last hurdle -- approval by a bankruptcy court judge. When that is accomplished, the mill should be up, running and rehiring workers by the end of August.

Prior to making the announcement, the buyers met at the Park Falls city hall at noon with Mayor Tom Ratzlaff and Gov. Jim Doyle. According to Stoeckel, besides Johnson Timber, the other mill investors are the State of Wisconsin, the United Steel Workers Union and some private local and national parties. The meeting was closed to the public but parts were broadcast over a radio station at 1 p.m. and the news traveled fast.

"(The broadcast) was 17 minutes long," said St. Anthony Parish secretary Mary Zoesch. "Everybody's was hovering over their radio listening."

Dan Detko president of the Park Falls mill's United Steel Workers union was cautiously optimistic when he heard the news.

"It's starting to feel better," he said. "It's starting to look up but it's my understanding that the bankruptcy judge still has to approve the deal."

He and other union representatives have been meeting with Johnson Timber over the past weeks and a few promises have been made.

"They would recognize the union and its current labor agreement with special considerations for startup," Detko said.

For example, startup would be on a seniority and by-need basis. All 300 workers would not be recalled at once.

Detko, a Park Falls native, is one of the long-timers at the mill and would have had 27 years in this month. His two children are grown and away from home in the U.S. Army but he said he never considered leaving the area.

"I didn't know if a buyer would be found or not but we always remained hopeful that they would," Detko said.

The excitement seemed to be mixed with hesitancy throughout the community.

Gary Zoesch a 32-year employee of the mill, wasn't popping any champagne corks yet.

"I hope it's true," he said. "It sounds like it will happen."

Fr. Jim Jackson, pastor of St. Anthony Parish in Park Falls, felt very positive about the announcement.

"The Lord is certainly continuing to bless us," he said. "There's a lot of joy in town right now."

And in his Sunday sermon, Jackson drew a parallel between the town's trials and the story of Job.

"He was blessed because he continued to have faith and believe," he said. "Our town is a town of faith and hope.

< local archives

© Superior Catholic Herald, 2006