Marathon Pulp is going bankrupt and putting 240 workers out of jobs.
The operation, owned by Tembec and Kruger, owes $50.4 million to creditors and filed for bankruptcy protection, Feb. 13.
But the joint venture company announced March 17, it won't be seeking a 30-day extension on its protection. The bankruptcy is being handled by PricewaterhouseCoopers which will look for a new buyer for the mill.
In the face of earlier waves of forestry mill closures, Marathon Pulp was known locally as "the little engine that could." Its shutdown is sure to cause a huge impact in the community of 4,400 on the north shore of Lake Superior.
The mill payed more than $1 million annually in taxes to the town. Local politicians are expected to apply for federal funding to develop a study to determine costs for new ownership to take over the operation.