"The recession has done its damage and we just couldn't last out the long hard slog any longer," Founder Stephen Maselli said.

Maselli said Old Adirondack, which made everything from Adirondack chairs to rustic beds,
wasn't affected by the fact that his factory sits inside the Adirondack Park.  He said a major factor was competition from cheap foreign manufacturers that make Adirondack style furniture.

"Imports have surged now to 89% of all furniture, and it sets a very low price expectation," Maselli said. "So overall furniture is one of the most difficult and troubled areas."

Maselli said the downturn in sales began in August 2007 and the company was never able to recover. A statement released by Old Adirondack indicated that August is usually a strong month for sales and that the downturn "clearly was related to the housing downturn and national financial debacle."

The statement also blamed "today’s limited access to working capital."