ALBANY — National log home kit manufacturer Lincoln Logs is scrapping plans to reorganize in bankruptcy court after seeing the credit and housing markets further deteriorate since its Chapter 11 filing in September.

U.S. Bankruptcy Court Judge Robert Littlefield last week approved an auction for the assets belonging to the company, which is headquartered near Lake George. The Jan. 28 auction at the Albany courthouse is expected to fetch a minimum of $3.5 million, though it is not clear whether the company will be sold as a whole or piecemeal.

Although multiple parties have expressed interest in Lincoln Logs’ assets, the manufacturer was not able to procure a preferred buyer or “stalking horse” bidder who could establish a price floor and ensure the company is sold intact.

The auction could spell the end for the 31-year-old company that in September employed 49 people, mostly in upstate New York, though that figure has dwindled to three part-time workers, according to Lincoln Logs attorney Angela Miller.

“We would love it if they could be sold as a whole,” Miller said.

Miller would not identify any of Lincoln Logs’ prospective bidders. Company creditor Michael Elbery earlier this month said it would be an “injustice” for Lincoln Logs to not be sold as a going concern.

After high mortgage rates and job instability hammered sales and drove them down 36 percent between spring and late summer, Lincoln Logs filed for Chapter 11 on Sept. 17. Also hurting the company was $3.4 million in soured acquisitions, including the defunct True Craft Homes and Snake River Homes it acquired separately in 2003.