Chesapeake ship painter closes after losing credit line

CHESAPEAKE

Weakened by long-running financial problems, the sandblasting and maritime painting company JEMM Industries Inc. has closed, leaving its work force of 60 to 70 employees unpaid, an attorney for the company said Friday.

The shutdown was prompted by JEMM's loss of its line of credit with Fulton Bank, said Lawrence Glanzer, the attorney. Because of the bank's lien on JEMM assets, there probably won't be sufficient resources left to cover what employees are owed, Glanzer said.

JEMM, based in Chesapeake, owed more than $2 million on its credit line and other bank debt, he said.

At a meeting with Fulton on Wednesday, the company sought additional credit to continue its working and to cover its payroll, said Glanzer, who is with the Norfolk law firm of Roussos, Lassiter & Glanzer.

"The bank," he said, "basically told us 'No.' They told us, 'We're very sorry, but we can't do that.' "

Organized in 1990, JEMM performed most of its sandblasting and painting at local shipyards but handled some jobs, such as painting anchor chains, at its shop on South Military Highway near Bowers Hill.

Two trucks were parked outside Friday, but there appeared to be no activity at the company's facilities.

JEMM had been wrestling with financial difficulties for at least two years and "was not going to survive," Glanzer said. However, its owners had hoped to wind down operations rather than close abruptly, he said.

It's unlikely that JEMM will file for bankruptcy, he said, because there are too few resources for a trustee to administer.

Tom Shean, (757) 446-2379, tom.shean@pilotonline.com