A small company finds way back from disaster

In 1899, Luther G. Harpel, a chemist intent on becoming a pharmacist, began mixing chemicals. Along the way, he became interested in photography.

Later that year, he founded Harpel's Inc., a photographic-development service, in Lebanon. The business soon expanded to include a portrait studio and custom framing house. By about 1913, it began selling office-related products.

But in November 1990, the founder's descendants almost presided over the company's demise. That month, a fire gutted the business, burning it to the ground. The Harpels lost their 110-year-old building.

To survive, they reasoned, they had to take a positive, aggressive approach. According to Richard L. Harpel, president of Harpel's Inc., 701 Cumberland St., Lebanon, and Luther's great-grandson, the business was operating the very next day -- from his basement.

Although he admitted being put out on the street "takes the wind out of your sails," not having a storefront location wasn't terribly important since the bulk of the company's business already came from catalog-based sales, he explained.

The process of rebuilding the business began long before the headquarters were rebuilt.

"Right away, we sent mailings out and advertised in newspapers to reassure our customers," Harpel said. He and his staff also telephoned customers to let them know they weren't down for the count.

Harpel's father, David, his mother, Anne, and his wife, Mary Lee, all work at the store part time in various capacities. By staying in touch with customers and maintaining a positive stance, the Harpels kept their enterprise alive.

And the fire itself had a rejuvenating effect, giving the family time to reflect on and improve the business. They added a quick-copy shop to their line and, after taking possession of a new building in 1992, they rented office space on the new site to outside tenants.

Currently, Harpel's has 20 employees and annual sales in the millions, though Harpel wouldn't disclose exact revenues.

Stu Perlmutter, president of Harold's Home and Office Furniture, a family-owned business founded in 1946, said all the local competitors get a share of the Lebanon market.

"We all get along ... it's a small town," Perlmutter said.

Sheila Houtz, in charge of the office furniture and supplies department at Boyer Printing Co. Inc., said after the Harpel's fire, Boyer's business went up a bit. But it leveled off after a few months.

"We kept some of the new customers, and some of their old customers went back to them," she said.

The competition between local firms in Lebanon is fairly friendly, she added.