No. 8: Loleta Cheese Factory auctioned
The holidays haven’t been kind to the owners of Loleta Cheese Factory, which succumbed to crippling financial debt and was auctioned in December.
Owners of the decadesold factory made a latehour plea for help as it became clear that Umpqua Bank would seize their property in light of a halfmillion dollars in unpaid mortgage.
The problem had worsened this past year when the bank raised its interest rate, spiking the family’s obligation by several thousand dollars each month.
Help arrived: Humboldt County officials, state Sen. Mike McGuire, and Rep. Jared Huffman alike sent letters to the bank asking for the auction to be postponed. The cheese factory was built in 1982, and residents were vocal on social media about seeing the business saved.
The auction ultimately took place on Dec. 6, but with no official buyer. Now the brand’s future hangs in limbo, though Bob Laffranchi no longer owns the property. Meanwhile, the factory’s 15 remaining employees are now without jobs.
Along with elected officials, residents placed pressure on the bank to change its mind. Michelle Laffranchi, the owner’s daughter, shared an Umpqua executive’s office phone number in a widely shared video but asked the public not to harass anyone.
In a statement, Umpqua Bank said that the factory’s financial problems had lasted years and an auction was the last resort.
This wasn’t something the Laffranchis had sought to omit. Bob Laffranchi was open about his “mistakes,” but said he wanted another chance to run the factory he and his wife started. Even with the factory out of his ownership, Laffranchi still believes in a horizon.
“My stated goal is still to save Loleta Cheese and take care of our staff and get them back to work as soon as possible,” he said earlier this month.