Spokane Valley-based foundry Spokane Industries LLC has filed for Chapter 11 bankruptcy protection, citing equipment failures, rising material costs, a structural collapse at an operating facility, and more than $1 million in employee embezzlement as factors that strained the company’s finances, according to court records filed with the U.S. Bankruptcy Court for the Eastern District of Washington in January.

Spokane Industries' work involves casting metal by melting it into a liquid and pouring it into molds to create parts primarily for the mining and aggregate industries. The company leases about 210,000 square feet of space across four buildings at the Spokane Business & Industrial Park, at 3808 N. Sullivan.

As previously reported by the Journal, Patrick and Lisa Turner acquired the foundry in January 2022 from brothers Greg and Tyrus Tenold. The company did not respond to requests for comment, and its attorney, Thomas Buford, of Seattle-based Bush Kornfeld LLP, declines to comment. 

In a declaration filed with the court, company President Patrick Turner attributes the bankruptcy to a combination of operational setbacks and unexpected crises that emerged after he and his wife acquired the longtime foundry.

The company struggled with aging equipment that proved to be "older and far less reliable" than had been represented in the acquisition of the foundry, leading to frequent downtime, defective products, and limited production, Patrick Turner contends in court filings. The company also struggled to obtain maintenance staff equipped to efficiently target issues and prevent downtime. 

When the Turners acquired Spokane Industries, the company had a substantial backlog of orders due to stockpiling during the COVID-19 pandemic and an inability to operate equipment at full capacity. In the first quarter of 2022, prices for key alloys used during production surged between an estimated 25% and 35%, forcing the company to fulfill backlogged customer orders at a loss since those contracts had been locked in at earlier pricing. This contributed to the decimation of the company's working capital, a situation from which it has been unable to recover, Patrick Turner states in court records.

He also cited a postpandemic decrease in demand after customers stopped stockpiling supplies, as well as ongoing labor challenges that limited the company’s ability to operate efficiently.

Operations were improving by the second quarter of 2025, Patrick Turner says in court documents. However, a significant setback occurred on Aug. 17, 2025, when a structural beam failure caused part of an operating facility to collapse, forcing a production shutdown for about five weeks. The shutdown resulted in an estimated $1.5 million loss for the business. So far, the company has only received a $450,000 advance from its insurance plan, court records show.

Patrick Turner also discloses in court records that the company discovered a major employee embezzlement scheme. The FBI contacted him in April 2025, and an internal investigation later determined that about $1.1 million had been stolen from the company between 2023 and 2025, his declaration alleges.

According to bankruptcy filings, Spokane Industries has total assets of about $10 million, liabilities of about $20 million, and has between 100 and 199 creditors. The company employs about 100 people, down from a workforce of 120 in 2022. 

Last year, Spokane Industries generated about $21 million in revenue, documents show. This year, from Jan. 1 through the bankruptcy filing date on Jan. 23, the company reported an estimated $957,000 in revenue.

To remain in operation, Spokane Industries is seeking court approval to use cash collateral to pay its vendors over time. The cash infusion and allotted time will allow the company to undertake the needed equipment repairs and build up a supply of materials so it can eventually reach production levels of five heats per day and 25 heats per week, court records state.

The company has arranged a proposed debtor-in-possession financing of up to $2 million from private lenders to fund payroll, utilities, raw materials, and other expenses, according to the filings.

Spokane Industries was founded in 1952 as Spokane Steel Foundry by the late John Tenold, father to Greg and Tyrus Tenold. In 1965, the foundry relocated to the Spokane Business & Industrial Park. In 1978, the company established a metal products division, and the foundry was renamed Spokane Industries in 1981. The company created a precision castings division in 1991 to produce investment castings, which typically are small wear parts that are formed using wax and ceramic molds.

When the Turners took over the foundry in 2022, the husband-and-wife team told the Journal that the foundry had experienced a 27% revenue increase in the first seven months of 2022 compared to the year-earlier period. They also cited higher employee morale since implementing a profit-sharing plan.

Upon taking over the company, the Turners' goal was to double revenue within the first two years of new ownership. 

"It was our intent to expand (Spokane Industries') operations to service the mining industry, particularly after recognizing the increase of global copper demand," Patrick Turner states in court records.