The demise of Sebago Pacific, Inc., one of the only long-haul trucking companies in the Lakes Region, began two years ago when diesel fuel hit all-time highs of $4.50 to $5 a gallon.

After 28 years in business, Naples-based Sebago Pacific had overcome many challenges – broken down rigs in far-off locales, a slack economy – but according to owner Kenton Varney, the price of doing business after 2008 became overwhelming.

On Saturday, Varney called each of company’s 23 drivers to inform them that the doors to Sebago Pacific were closing for good. By Tuesday, last-minute hauls were back at the Songo School Road base, and Varney and his mechanic John Drew had already begun the lengthy process of prepping the trucks for liquidation. And with money gained by the sale of the equipment, Varney said he hopes to offer his employees severance packages.

But it wasn’t only the fuel crisis that eventually broke Sebago Pacific’s bank. Higher tolls, lower quality trucks requiring costly repairs, taxes, and customers unwilling to pay a fuel surcharge all added to the company’s financial hardship.

“The end really started two years ago with fuel prices shooting up. We burned through our savings pretty fast because of that,” said Varney, who founded Sebago Pacific in 1981 with co-owner Mike Ryan. “But it’s been a problem since then as well. People don’t seem to realize diesel is up 90 cents since last March.”

Varney, a West Gray resident, was riding high in 2006 when peak employment hit 27 full-time drivers and one part-timer. As of closing on Tuesday, Varney employed 19 full-timers, two part-timers and two owner-operators.

State Rep. Rich Cebra, R-Naples, is sad to see a good Naples employer fold.

“A bad economy is one thing, but the cost of doing business in Maine and its anti-business regulation has been an issue for years and is clearly hampering our local companies’ ability to survive in these hard economic times,” he said.

Varney said some employees at Sebago Pacific were angry about the layoffs, but others understood the company’s situation.

With his son’s help, John Pettengill, of Biddeford, was at the Naples base on Monday clearing his rig of his possessions. Pettengill, who spent five days and nights driving over the road most weeks, had worked for Varney for four years and is “more bummed than sad, because of that man in the office,” he said, referring to Varney. “He’s one helluva great guy.”

Pettengill, who said he’s been to every state east of the Mississippi hauling building supplies for Sebago Pacific, said Varney went out of his way to provide for the drivers while out on the road, lining up motel rooms when trucks broke down, giving bonuses when times were good, and offering decent wages and benefits.

“I’m not the only one who feels this way,” Pettengill said. “Instead of being angry, we feel for him. We know times are tough. And I’m sure most of these guys will tell you that more people should take lessons from this guy in how to run a business.”

Longtime Sebago Pacific driver Chuck Garland of Limington echoed Pettengill’s comments. Garland, 59, has driven for Varney for 13 years, appreciating every minute, he said.

Asked if he sensed the company was in financial trouble, Garland said, “In a way, yes, but we were all hoping it wasn’t. But it wasn’t his fault. He was a great guy to work for. Best guy I’ve ever worked for in my life. I loved it there.”

After being away from home for days at a time, sometimes weeks or more, for many of his 30 years driving truck, Garland said he’s going to take a well-deserved break and then search for a new job. The same goes for his boss, too.

“I wish I could retire, but that’s not going to happen” Varney said. “It’ll probably take a couple months to liquidate the trucks and equipment. It’s not the greatest economy to be trying to sell equipment. We’ll see what happens after that.”

One of Varney’s major clients was Hancock Lumber, which is now in the process of finding a new hauler. Sebago Pacific performed a variety of functions for Hancock, dealing mostly with the Ryefield saw mill in Casco.

According to the mill’s general manager, Mike Shane, Sebago Pacific hauled wood between mills, as well as to Hancock’s retail stores. And it hauled wood to wholesale distributors in the Northeast, South and Midwest, including Marvin Windows in Minnesota.

“Right now, we’re working on finding a company or companies to help fill that void,” Shane said. “But for us, anytime you see a local company go out of business, which puts local people out of a job, that’s certainly a sad situation for the community as well.”

Rep. Cebra echoes that sentiment.

“It is a terrible occurrence when a long-standing local business like Sebago Pacific closes its doors. Hard working peoples’ lives are turned upside down,” he said. “Everyone I know who is out of work wants to work, and we need to make it easier, not harder for local businesses in this state so we don’t continue to lose more good jobs.”

Holding a furry penguin named Douglas that his son, also named John, gave to him to remind him of home while driving long-haul for Sebago Pacific, John Pettengill, of Biddeford, stands in front of his Sebago Pacific truck on Monday. With his son’s help, Pettengill was at the Naple’s trucking company’s headquarters to clean out his truck, which he said was like a second home for him for the last four years. Sebago Pacific, which was one of the few long-haulers in the Lakes Region, closed earlier this week citing fuel prices and a bad economy.
Staff photo by John Balentine