The Dirigo Paper Company mill along the Connecticut River in Gilman is closed and 114 people are out of work.
A spokesman for Vermont Governor Jim Douglas says state officials have been told the employees have been laid off.
Jason Gibbs says The Agency of Commerce is working to line up potential buyers.
Out-of-work plant employees don’t know much about the situation, but some are under the impression the plant will reopen.
Employee Steve Bean says Dirigo was the fourth paper company he’s worked for at the Gilman mill in 21 years.
In May company officials said the plant had won the contract to produce paper for Canadian and Australian editions of “Harry Potter and the Deathly Hallows,” the final book in the Harry Potter series.