TUALATIN, OR - Lumber Products , which filed for Chapter 11 bankruptcy protectionApril 11, will lay off 65 workers at its Tualatin, OR facility.

Employee-owned Lumber Products, founded by the Hall family, told the Oregon State Workforce Development department the layoffs will be permanent. Edward Hostmann, who is directing the lumber, door and millwork firm's turnaround effort, expects the layoffs to be permanent, reports the Portland Business Journal.

The company is losing its CFO, VP sales and marketing, and several managers and directors, as well as 10 employees in its door shop, begining June 29, the newspaper reports.

One of Oregon’s largest private firms, at its height Lumber Products employed 600 and had almost $250 million in revenue, with operations in New Mexico, Arizona, Utah, Idaho, Montana and Washington.

The Lumber Products bankruptcy complicates matters for employee owners, especially employee owners that are still in the plan "Based on the current status of the company we are waiting to receive additional instructions on how to handle the administration of the ESOP. In addition, the stock value for the 2011 Plan Year is not yet determined," the Lumber Products website says.

Lumber Products was started in Portland, OR in 1938 by Ernest E. Hall and his son, Ernest L. Hall, after realizing that the millwork business they were in needed wholesale distributors to get product to the end user. Ernest L. Hall's son, Leonard, took over as general manager until 1984, when his son Peter became the third generation of the Hall family to lead the company. Craig J. Hall, who represents the fourth generation, joined the firm in 1989.

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