CHESTERTOWN, N.Y. -- For a niche business, like log-homes, being in a slumping housing market and being unable to pay your creditors is the perfect storm for financial ruin.

Just the kind of thing that'll get you on a Fox News Show called "Save The Town.

And that's where our story starts to get good.

"As things continued on that slide downhill we found ourselves last summer facing a financial catastrophe," said Lincoln Logs Director of Operations, Dave Patton.

And by September, Lincoln Logs had filed Chapter 11 bankruptcy.

The company opened it's door in 1977 in a small town of 3 thousand and all it's employees live within 25 miles.

"That stone that gets thrown in the pond ends up being a bigger stone. In other words, the ripples go further and are of more consequences," said Patton.

The trees that get cut down 20 miles down the road, get made into houses here. They're not sent to Canada and made into two-by-fours and sent back. So the impact on this Adirondack town if Lincoln Logs hadn't succeeded would have been a disaster.

"The impact on the logger, the impact on the person selling him the machinery, the impact on the grocery store that he buys stuff in and the trickle down that comes all the way down to us as a manufacturer," said Patton.

"I had one month to make a decision," said Larry Stephenson about buying the company. "Was it a hard decision to make? It was an easy decision to make. Once we looked at it, what people were here, what the potential was for sales."

Two and half million dollars later, the company, it's assets and debt
and it's first home that was shipped yesterday are all his.

"We have hit bottom and we are on our way up and as it was said to us by Fox, that is specifically what they are looking for. They were not looking for something that was the result of a recession, they were looking for something that had a good news story it," said Patton.

In just five short months, the company went from being bankrupt to now being back in business. They've rehired 20 employees and are looking for five more. Stephenson says he hope that this and this attention will him build a better future for this company.