Approximately six weeks after discontinuing its line of outdoor wood furnaces, HeatSource 1 declared Chapter 7 bankruptcy.
HeatSource 1 is owned by Mark and Kathy Setzer of Beatrice.
The September issue of the Tri-County Credit Bulletin lists HeatSource 1’s assets as $209,005.88 and its liabilities as $546,749.56.
Declaring Chapter 7 bankruptcy essentially ceases operations of the company.
“It’s a matter of closing out a brand name,” said Mark Setzer.
Despite the closing of HeatSource 1, Setzer said no jobs will be lost.
“Everybody that was with HeatSource 1 was hired by Setzer’s Manufacturing which is extremely busy,” Setzer said. “We recently hired a couple more employees and plan on putting on several more.”
Setzer’s Manufacturing currently employs 12.
According to a press release issued by the Setzers in August, the closure of HeatSource 1 comes after a recent ruling by the Environmental Protection Agency which deemed the testing method of outdoor wood furnaces flawed.
As a result, manufacturers of wood furnaces are now required to redesign and retest any wood furnace which they manufacture, at their own expense.
Setzer said the EPA’s ruling is part of “too much government control on small business,” causing businesses to leave the area.
“For years I used to go out to the high school and talk about the American dream of owning your own business,” Setzer said. “But that dream is dead now because of too much government control.”