A longtime Altoona architectural firm has closed its doors.

Hayes Large Architects was closed on Wednesday by order of Judge Jeffrey A. Deller of the U.S. Bankruptcy Court of Western Pennsylvania.

The firm, founded in 1922, filed for Chapter 11 protection in October 2014. The firm scaled back, reorganized and returned to a profitable position during 2015.

“Obviously we are disappointed that we have not been able to meet the demands of our creditors,” said Managing Partner Dwight Knouse. “We were very close to a deal last month, and for reasons we don’t understand, the other side changed the terms beyond what we could realistically manage. We fully expected to emerge from bankruptcy this fall. However, once a creditors committee was formed, despite our efforts to negotiate an acceptable path forward, the committee took legal action to force the closure of our firm. Our Chapter 11 protection case was converted to liquidation.”

According to documents filed in U.S. Bankruptcy Court in November 2014, Hayes Large Architects had assets of $733,625 and liabilities of $1,376,925. The list of 20 creditors holding the largest unsecured claims included engineering firms, project consultants, insurance companies and legal firms.

The shutdown of the business affects 11 employees, nine in Altoona. The company also had an office in Reston, Va.

With the shutting of the business, clients with projects in the works are left hanging.

“We’re sorry for the impact on our employees and on our loyal clients,” Knouse said. “While we are profoundly disappointed by this unexpected turn of events and the end of a legacy firm. At the same time, we’re incredibly thankful for the continued support and trust demonstrated by clients, friends and colleagues over this last year. They can be proud of their contribution to our area’s buildings and landmarks.”

Blair County Chamber of Commerce president and CEO Joe Hurd called the closing of the business a “significant loss.”

“It’s very difficult to lose any business from our community, but especially tragic to lose a longtime business like Hayes Large, which has always maintained a reputation for quality and professionalism. I know that the challenges that they faced, particularly within the realm of school design, put them at an incredible disadvantage, and they truly did their best to right the ship. It’s a significant loss, for sure.”

Knouse, who had been with the firm since May 1979, and partner Randy Hudson, who joined the firm in 1975, admitted they were surprised by the sudden ruling.

“We turned the business around and made it profitable, and that is what is crazy about this. There was no reason for this to happen,” Knouse said.

Hayes Large Properties, comprised of Knouse and Hudson, own the building at Fifth Avenue and Logan Boulevard.

“The building has been for sale or lease since the declaration a year ago,” Knouse said.

Known as a leader in education and health care design, Hayes Large at one point employed 140 people in Altoona, Harrisburg and Pittsburgh.

The firm designed more than 4,000 school projects; was the master planner for the Penn State Altoona campus; designed most of the facilities for Altoona Area School District and the UPMC Altoona Hospital; and designed the headquarters for the state departments of transportation and environmental protection and the National Civil

War Museum in Harrisburg.

“We have some great buildings that are the legacy of this firm. Randy and I contributed to them as well as many others. They are all over the place; we drive by them every day,” Knouse said.

Neither Hudson nor Knouse are sure what they will do next.

“We put all of our energy into running this business. We haven’t made any plans. This came fast and unexpected, and even our attorneys were surprised,” Hudson said.

Mirror Staff Writer Walt Frank is at 946-7467.