Burlington, N.J.—The specter of Hoboken’s demise has touched its first supplier as Wood Flooring International (WFI) announced it was closing its doors with an “orderly liquidation” over the next two to three months.

WFI, which started in 1998, began laying off people early last month and now has a skeleton crew at its headquarters here—to take care of customers as it goes through a voluntary liquidation.

The company, which specialized in sourcing and selling exotic woods through distributors, was on the fast track of growth in recent years and even expanded its commercial business. Between 2003 and 2006, WFI reportedly grew 63.4% with annual sales going from $14 million to $22.9 million. WFI’s growth was so impressive earlier this year it made Inc.’s “5,000” list for fastest-growing companies.

But, according to published reports, Hoboken’s collapse proved to be too much. Bill Jopling, WFI’s CEO, told the online magazine of Hardwood Floors, the publication of the NWFA, “We had largely extricated ourselves of Hoboken except for commercial.” Additionally, “Hoboken bounced a bunch of checks, stranded... containers at port, and there was roughly $700,000 in projects for November and December deliveries that got unconnected.”

To add insult to injury, the publication said WFI also had $1 million in inventory at its distributors waiting for a Nov. 1 launch with a national account, with the marketing pieces being SKUs from both WFI and Hoboken, and when Hoboken shut down, “the account killed the program.”

Jopling told NWFA’s magazine, “I voluntarily called the bank. I’m trying to do the right thing by everybody. We had to watch the potential liabilities coming out of the aftermath of Hoboken, so we’re basically winding down WFI.”

What is interesting and unfortunate about this is Jopling and other officials note WFI’s overall concept and business was solid. John Himes, WFI’s president, reportedly said the programs had proven to be the correct model because despite a tough business economy, sales were up 7% over 2006.

WFI may be winding down its operations, but executives hinted at a new company rising from the dust. Jopling is quoted, “On the other side, there will be another organization springing up,” while Himes noted plans by former employees are coming together with the support of current WFI suppliers and customers, and the new organization will be able to provide continuity of product collections currently in the market. (Editor’s note: Officials were unavailable at press time to give more details on this.)

Calling it the “domino effect” from Hoboken, Jopling expects other companies will suffer the same fate as a direct result of the distributor going under. “I’ve got to wonder how many other suppliers are going to go.”