DUNCAN, B.C. — Hayes Forest Services Ltd., one of the biggest contract logging companies on Vancouver Island, has filed for creditor protection, according to a story published by Canada.com.
The Duncan-based company was started in 1922 by Douglas Hayes. He also developed the Hayes truck, a heavy-duty vehicle used largely in logging. While Hayes Trucks was eventually sold to Mack Truck in 1969, passing to Kenworth which closed it down in 1975, the logging operations continued. At one point, Hayes was the largest single logging company in B.C. and won repeated recognition for sound management.
Hayes Forest Services has been granted protection under the Companies Creditor Arrangement Act, the company stated in a Supreme Court of B.C. hearing. The Bowra Group was appointed as monitor.
In a press statement, company president Donald P. Hayes, blamed a combination of forces: the consolidation of coastal forest tenures, collapse of the US housing market, weakness in the US dollar and rise in fuel costs.
“Hayes, like many players in the forest industry, has been hit by the perfect storm,” he said in the statement.
“We have come to the conclusion that we must restructure.”
The company said it will continue to operate as it restructures, downsizes and pays down debt. It expects to eventually come out with a core timber, equipment and helicopter business.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News