The Schwebel Baking Company’s efforts to find a new buyer have failed, and the company will halt operations.

The news came out of an hourlong telephone status conference this morning with U.S. District Judge David A. Ruiz in U.S. District Court, Youngstown.

“Extensive discussion occurred,” according to minutes of the proceeding released by the court. “Notably, Defendant’s discussions with a potential buyer have come to a close, and the company is proceeding with a wind-down of its operations.

“In addition, a secured creditor of Defendant just filed a lawsuit seeking to enforce its security interests in substantially all of Defendant’s property. Defendant said creditor intends to seek the creation of a receivership.”

Earlier this week, Spectrum Commercial Finance of Bloomington, Minnesota, filed suit to recoup $3.76 million. If its projections hold true, all of Schwebel’s assets will be liquidated by Sept. 26.

“Our legal team is reviewing that lawsuit as we continue winding down the business,” a Schwebel’s spokesperson said in an email. “We have not communicated any closing dates to our employees. We would prefer not to comment further at this time.”

Read more in Thursday’s print edition of The Vindicator or check vindy.com for updates.