This is terrible news for many blue-collar families in Mississippi and North Carolina. Last night, United Furniture, makers of Lane brand, fired all of their manufacturing employees and transportation workers effective immediately.
Fortunately, other manufacturers are quickly messaging the displaced workers with job offers {link}, but the overall message from the collapsed company is alarming.
Read the email letter from today that accompanied the late-night notification:
(Via Furniture Today) – “At the instruction of the Board of Directors of United Furniture Industries, Inc., and all subsidiaries (the “Company”), we regret to inform you that due to unforeseen business circumstances the Company has been forced to make the difficult decision to terminate the employment of all its employees, effective immediately, on November 21, 2022, with the exception of over-the-road drivers that are out on delivery. Your layoff from the Company is expected to be permanent and all benefits will be terminated immediately without provision of COBRA.
Over-the-road drivers that are out on delivery will be paid for the balance of the week. Whether or not you have completed your delivery, please immediately return equipment, inventory, and delivery documents for those deliveries that have been completed to one of the following locations: Winston-Salem, N.C., Verona, Miss., or Victorville, Calif. location. To be clear, do not complete any additional deliveries.
We regret that this difficult and unexpected situation has made this necessary. Additional information will be provided shortly.
Thank you for your service and dedication.
UFI/Lane Corporate Communications” (link)
A few quick points.
First, everyone who is not pretending is well aware the U.S. durable good economy is in a severe state of contraction. This manufacturing announcement is deeply troubling and sad, but unfortunately not unexpected – all things considered.
Second, while understanding that an unexpected loss in operational funding is usually what leads to these “immediate” types of total operational collapse, most often the result of a lender backing away from a desperately needed continuation loan, the callousness of the job loss communication reflects disconnected corporate management.
Third, while the economic framework would preclude it happening on his watch, United Furniture Industries is damn lucky President Donald Trump is not in office right now or there would likely be an eviscerating response to this announcement.
I have never met President Trump, but I have watched closely enough to accept that we are tuned to the same business frequency. This is not the way an American company, or any company for that matter, should conduct itself during crisis.
My prayers are for those families who woke up this morning with the financial rug pulled out from under them.
.
Father of mercy and comfort wrap Your loving arms around the families who received notifications of job losses today. Trepidation and financial fear can lead to horrible family stress. Lord God and provider of all security, within Your Word You have said for us to cry out in Your name, and we can receive.
For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future;” (Jeremiah 29:11)
And so, I am asking for Your peace and reassurance to lay upon the troubled families and workers. I pray today knowing there but for Your grace we too may find ourselves.
Father, of love and support send Your spirit of strength into the hearts of those who received this employment news. Guide them closer to You and toward financial security in every tomorrow. In Jesus’ powerful name, I believe and pray.
Amen
this is type of company one would expect to fold under the communists in dc. furniture is not a necessity, especially new furniture.
Yep, I am thinking China.
How cruel to do this just before the holidays.
Democrats hate for The People to have new stuff.
It will be interesting to learn more of the truth of this in the coming days.
Commercial paper is up 32X in the last year. That’s right, 32 times more expensive to roll Commercial debt. That’s the answer. Game over, everyone goes home. Welcome to the Great Reset. God help us all.
I feel so bad for these workers and on the eve of Thanksgiving.
This is a link about the company , they were incorporated in 1993 with names of directors.
https://opencorporates.com/companies/us_ms/689204
https://lanefurniture.com/page/our-company-history
History…long before 1993…
Back in the 1950s – 1960s every gal had or wanted a Lane Cedar Chest/Hope Chest. It seems back then every household had at least one.
This company manufactured great furniture. I had no idea they were still in. usiness.
I still have my mother’s Lane Cedar Chest that was her High School Graduation gift in 1950 – and it is still solid as a rock!
I still have my moms too! Still in perfect shape. Built to last unlike furniture built these days.
ours is 55 years old
I bought one last year in perfect shape for $100.00. Made in 1946. Older than me. It’s gorgeous!
My first coffee table (Circa 1973) was a Lane. Best table ever! Prayers up for these poor folks and their families. Think I’ll have a ‘Lane Bonfire’ tomorrow night as a show of respect. Lane doesn’t make em’ like they used to. They don’t even make them! GOD please help us!
I have a 1989 Thomasville sofa that needs recovering, but it’s the most comfy, well-made piece I have. Hand-tied springs. Made in the USA then.
Then they moved their case good plant to China. Then everything else.
I tell youngsters furnishing their first home…Craigslist/Offerup/FB Marketplace is your friend. Don’t buy the overpriced cheap stuff and put it on credit.
Consider the Amish furniture. Solid wood, crafted with love and respect.
I made 2 cedar chests in 1957, my senior year in high school wood shop, and those are still in use also.
And it was priced so that average people could buy it.
In the mid 20th century, when they were a case goods (hard furniture) manufacturer, they made good stuff that is highly collectible today. They were sold and merged, more than once, and became manufacturers of junk (supplying places like Big Lots and Walmart), including crap upholstered pieces. One article I saw said they were also importing pieces from China. Of course, that doesn’t change the fact that the employees were all abruptly and callously let go. Other articles I read said that United Furniture (parent company) also let go nearly 300 in N Carolina, this past summer and that several VP level staff bailed back then so they knew what was coming.
I have specified and used this company’s products for years. Something is amiss as Sundance surmises.
So upset for these families and towns who rely on these employers.
Hopefully, an angel will appear for all.
Makes me wonder if some bright smart-aleck in their finance department invested the company’s earnings into that bitcoin fraud and these layoffs are the end result, ripple-effect bankruptcy? Am sure over the next week what caused this event will start to leak out into the local press.
This is stunning.
UFI’s 10K for FY ended 7/3/2022
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=116924688&type=HTML&symbol=UFI&companyName=Unifi+Inc.&formType=10-K&formDescription=Annual+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2022-08-31&CK=100726
UFI’s most recent 10-Q
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=117045772&type=HTML&symbol=UFI&companyName=Unifi+Inc.&formType=10-Q&formDescription=General+form+for+quarterly+reports+under+Section+13+or+15%28d%29&dateFiled=2022-11-09&CK=100726
I may be mssing it, but I don’t see a “going concern” statement.
Thanks!
My take is, on paper they had about $50 million cash on hand, but were losing about $15mil/quarter. Their revolving loan was “saving” them, but it’s LIBOR+% so debt would only grow. Net Income was way down in Americas, while cost of goods are way up compared to last year. Their Brazil, Asia income looked positive, just not large enough to overcome US losses.
Their derivative investments are all currency exchange hedges. No speculative, so it claims.
My feeling is they are predicting a crappy Christmas earning season due to retail cut backs.
So, this is likely all prep for a Chapter 11 debt restructuring bankruptcy. Hold all outflows, cash out everyone with whatever is left on hand, restructure all the debts, kill the stock, and hope you come out the other side with your assets in hand.
And violate the WARN act to buy time and tie it up in court.
Crypto investors?
That’s what I was just asking.
Good Lord, that’s cold! I’ve been layed off twice and it no fun but in both circumstances it was dealt with compassionately. They must’ve held some FTT crap.
In 1992 I found out I lost my job by watching the suppertime news. They were telling the story how the Provincial government was creating 175 jobs by financing the Northwest Company acquire our warehouse. The news did not talk about the 150 dismissals. Part of our warehouse was a Union shop.
Unions are crap. The construction unions in CA just couldn’t turn down the prospect of dues-paying illegals on jobs, and that, combined with all those years of ZIRP, has devastated all the construction union pensions. I have part of my existing pension, and it’s almost time that they can’t make payments.
I wonder how many OTR (over the road) drivers bothered to return to home base…
Being instructed to NOT make further deliveries and return all company property and cargo to the locations listed, any movement of the “Equipment” (by the driver) NOT to one of these destinations could be seen as commandeering company property.
Any driver who might abandon the “equipment” would have that information placed on their “DAC” report and would very likely find it difficult to find gainful employment going forward.
Said driver would most likely be on the hook for any “Recovery Fees” associated with returning the equipment to a designated location. (likely most, if not more, than they would be owed in pay)
Imho, returning the equipment would be best…
All things considered.
And what about the client expecting the delivery?
Circled back, WSB. 🙂
Most contracts are not “Prepaid”, but settled once delivery has been made.
It is not dissimilar to monthly “Rent” being paid prior to actually living in a place (prepaid), and ordering your dinner in a restaurant (settled after the fact) and it never arrives.
Expectations are high once your choice from the menu has been placed; although grumbling, hunger and threats to never “Darken the Door” are the only realities if it never arrives.
Imho, the fact merchandise has been ordered, yet it never arrived, is purdy far down Lane’s list of concerns and will be handed off to the “Complaint Dept”.
Best
🇺🇸MAGA🇺🇸
OTR Drivers having big-ass road-side furniture sales now! Get your very own Lane relic real cheap right here folks! Good on em’. Empty the trucks on the side of the highway. Stick out your thumb! Bye Bye A$$holes!
If company drivers, they do not own the “Freight”, and would be, at the least, charged with selling company assets for personal enrichment.
If Independent drivers, they are on the hook for the “cost” of the freight if not delivered in good order and to the location(s) specified on the Bill of Lading (BOL). (binding contract)
Bad idea!
Damn boss the truck caught fire. Yup total loss, inventory burnt too ,Wink Wink
As with all “mass casualty” situations, wait for more details before coming to any conclusions about the circumstances behind the story.
Almost sounds as if an asset sale is in the works, where one company instead of acquiring another company’s stock buys its assets instead. The selling company fires all its workers and the new owner of the assets immediately hires them, and since it is a sale of assets, the acquiring company leaves behind the acquired business’s liabilities in a corporation that is then just an empty shell with cash in it.
Kind of stuff Romney used to do.
Yup
My exact thought!!
Used to do?
aka: Pierre “Gordo Gecko” Delecto
Romney used to buy failing companies and sell OFF pieces until there was nothing left.
Snap and snap with CarolynH.
With quite a few people thinking the same, odds are we are right.
Only a fool would leave a positive cash position in a corporation that was for sale/has been sold. Stipulations of in the sale agreement would be that the seller includes only the physical plant and unsold assets (products) and any cash would be for the purpose of paying the sellers liabilities going forward after the sale such that the actual cash value of the seller’s corporation is zero. The corporation should be liquidated immediately upon sale and any and all liabilities the responsibility of the seller going forward so no net profit is credited to the seller or the corporation in the next tax year.
You are correct about the position of the buying corporation, assets and the physical plant may be the most valuable things aside from the employees who can be then screened, interviewed to determine those who will be of the most valuable to the acquiring company going forward. Those who are or who may be ongoing liabilities won’t be rehired with no downside for the new owner.
That said I can’t support this kind of corporate behavior especially in light of the time of year and with no consideration of the employees status and options for rehire or retraining if the company is going to be continued under new owners for the same purposes. Rather callous and inconsiderate to say the least.
And if all is true, just who might be the name behind the hostile takeover?
If it IS hostile?
Business is in business to make money. They don’t mess around with feeling of employees.
Goes back to my post a few days ago….Business, like government, is focused on cold hard numbers and not the squishy feelings/needs/wants of their consumer or constituents.
Just another feather fallng off of that diseased unibird. Some other bird will pick it up to ‘feather’ their own nest.
Bingo…
I read one report on line about how other furniture manufacturers were jumping at the chance to hire some of the employees.
Artisans cannot be replaced with cheap illegal unskilled immigrants.
Let’s hope this is the window God opens…
Horrible!
God help these people who have received such heart-wrenching news Thanksgiving Eve. 🙏💕
As Sundance says, but for the grace of God we could all be staring at this. Not only did they lose their paycheck but also all provisions of Cobra. So they have lost their health insurance too. I’m sure their are a lot of children in those 2700 workers families that are not going to have a good Christmas. Please pray for all of those affected. I think just repeating the prayer from Sundance sums up what we should pray for. Unfortunately, we will probably be hearing more heart wrenching stories in the days to come.
They can look around, find a Direct Primary Care practice locally, membership model, no insurance accepted, great medical care for a low price, home visits, lacerations, broken bones, all kinds of things included.
So they don’t have to be without medical care.
I am in South Georgia and I know Mississippi is about the same as this area. We don’t have any kind of options like you speak of. We have one clinic for those without healthcare. It is so crowded you have unbelievable wait times to get seen. So if you have that option…Great! But I wouldn’t assume that everyone who needs healthcare can automatically get it. Many, many people here and I’m sure Mississippi is the same can’t get medical help without some kind of coverage.
The BBB plan in full swing – and we can all watch as the Jean muppet will tell all Americans how great the economy under Union-Boy Joe is – another casuality of the BBB plan – Get your seat belts on everyone – this is just the beginning of a bankrupt economy.
Callous.
And Covid only further widened the disconnect gap between those of us keeping production running – in Buildng – while the laptop class ‘worked from home’.
Fvcking communists. Both of our political parties are in bed(getting paid) with/by the CCP.
My daughter-in-law (MAGA and well-armed in every way) “worked from home” – and had no choice about it. The offices were locked and empty. For two years.
Those who “keep production running” wouldn’t have much stability in their job if the “laptop class” wasn’t doing its’ job. Her responsibility is to process invoices from contractors/vendors, making sure that all contract provisions are met. If millions of dollars of invoices (it’s a big company) aren’t paid, the contracts won’t survive for long..
A husband and wife, both laid off by United Furniture . Another employee showed up to work to find the gate locked.
Former United Furniture employees share stories of mass layoff | Business | djournal.com
Can’t read the article because it wants money. Can you copy and paste the pertinent bits?
Thanks!
I tried the link and this time I hit the subscription box. I don’t know how I got in the first time.
Sorry about that. Didn’t mean to post a “tease.”
I do remember from the article . . .. One of the employees said he is already looking for work because he doesn’t want a hand-out. Good, solid people in the Tupelo area. My sister and her family live near there.
The Daily Journal: “A LOCALLY OWNED NEWSPAPER DEDICATED TO THE SERVICE OF GOD AND MANKIND.“
That’s okay, rvsueandcrew! Thanks!
A useful, easy to use link for you & others to bookmark IF you wish to get behind a paywall rather than subscribing to the site.
https://12ft.io/
It is useful particularly when it is a small time local newspaper in some place you do not live, and that normally you would not want to be a subscriber, but just wish to read the one particular article at the time. Or, for doing research about some subject.
I mention it as I have sometimes found that an article that is behind a paywall that is part of some research I am doing & under normal circumstances I would not see the need to subscribe for just one visit.
IOW, it has its’ merits for reasonable use, IMO, of course, but it can also be abused if one wants to abuse it simply to avoid subscribing to a place they regularly try to visit but do not wish to pay for a subscription.
Folks should let their moral compass, ethics & honor decide if is is useful to them in any particular way should they decide to use it.
G’luck~! Let your conscience be your guide. 😉
Furniture companies usually take a lot of credit, and a lot of it self financed. When people have to buy food and gas for their children, the furniture payment can wait.
Plus, think of all of this market has missed over at least a two year period during the shutdowns, from college kids alone. Remote learners don’t need new furniture. Neither do businesses with remote workers.
PLUS Delusional Joe isn’t handing out checks to one and all any more. Well, sort of.
In the old days furniture businesses often had side gigs. Making sleds. ironing boards, paddles, caskets, cabinets, you name it. If it was wood they could have made it. They had all the talent in the world. Many of their resellers may have had need for all of the above, think the town Mercantile, The Merc.
Towns were built around these businesses. Many even provided area housing to their employees and their families.
And hearses often had a side gig as emergency wagons.
Top company management were terminated, new CEO, etc. brought in this June, 300 employees laid off in July, facilities closed or repurposed then too.
https://www.furnituretoday.com/financial/report-lane-shuts-down-all-employees-terminated/
So, was this a calculated premeditated shut-down?
https://www.furnituretoday.com/financial/report-lane-shuts-down-all-employees-terminated/
According to now former employees who spoke on condition of anonymity due to the uncertainty of the company’s next steps, an initial communication was sent out just before midnight on Nov. 21, which instructed employees not to report to their work location in the morning. That communication was subsequently rescinded and replaced by the notification above.
Furniture Today has contacted several Top 100 furniture retailers to see if they had been contacted by the company. Those responding thus far have indicated they received no advance notification nor any communication from the company as of this writing.
In June of this year, the company terminated its CEO, CFO and executive vice president of sales, and named former Standard Furniture President Todd Evans as CEO. The company subsequently restructured its sales organization and named Ruff Thomas and Keith News to sales leadership roles, with Thomas named president, sales for Lane’s domestic division and News named to the role of president, sales for Lane’s import division.
One month later, the company laid off 300 employees and closed or repurposed several facilities. This included closing its metal stamping facility in High Point; transitioning a manufacturing factory in Amory, Miss., to a warehousing-only facility; and transitioning a Winston-Salem, N.C., operation to an East Coast distribution center.
This is a breaking story. Stay tuned to furnituretoday.com for updates.
There’s some sort of federal law that firms employing over a certain number of people must give these employees a 60-day notice. Kind of like how all the lefties were screaming Musk didn’t give twitter employees the required 60 day notice, and which Musk then turned around to make sure they all got at least 60-days wages benefit.
The WARN Act.
Here’s a little more about what is going on:
https://www.furnituretoday.com/financial/report-lane-shuts-down-all-employees-terminated/
“In June of this year, the company terminated its CEO, CFO and executive vice president of sales, and named former Standard Furniture President Todd Evans as CEO. The company subsequently restructured its sales organization and named Ruff Thomas and Keith News to sales leadership roles, with Thomas named president, sales for Lane’s domestic division and News named to the role of president, sales for Lane’s import division.
One month later, the company laid off 300 employees and closed or repurposed several facilities. This included closing its metal stamping facility in High Point; transitioning a manufacturing factory in Amory, Miss., to a warehousing-only facility; and transitioning a Winston-Salem, N.C., operation to an East Coast distribution center.”
This almost sounds like an asset stripping venture (like Romney used to do).
Absolutely awful for these people. Especially at this time of year.
Beat you by a minute…see right above you…
I saw it after I posted mine LOL!! I think someone else also posited an “asset stripping” as well just as I posted. Great minds and all that 😉
They could have been victims of ransomware, fraud, theft, or sophisticated forms of crime. The fact that they did not give their employees any explanation seems unusual.
Dirty pool.
Prayers for the employees.
Amen
Thank you for the beautiful prayer, SD. Praying in agreement, In Messiah’s Name, AMEN!!😇🙏❤️
T2020, that’s exactly what I wanted to say but I’m not good at finding the right words quickly. thanks for doing it!
Amen
Their quality had gone down in recent years, but it’s sad to think there will be no more Lane cedar chests.
I have a Lane sofa table from circa 1996 and I love it! It is so heavy and solid. It makes me sad to think that Lane products may disappear. They were an important part of American greatness.
Coincidentally, I googled up Lane cedar chests this morning; I learned they stopped manufacturing them in 2001, when their ‘casegoods’ division was closed.
I give thanks to the fine craftsmen at Lane who provided a young lady a long-treasured cedar chest she bought with an early paycheck at a bomber plant in San Diego in 1942. It still sits at the foot of my bed with decades of family history contained within.
We are craftsmen and we won’t go quietly into the night. Count on it.
Amen
Too bad there is no mention of price before the information overload that stole too much of my time!
What if all the company’s funds were tied up in FDX crypto…
Amen. (to this prayer)
The High Point/Greensboro area, long the world capital of furniture making, has long been under assault.
And while the old handcrafted furniture industry in the mountains, has, come back a little, it is very little and only as expensive custom pieces.
In conversation, (and this was many years ago as the downfall was in progress) a furniture store owner told me, that, at product low and middle end, it was cheaper too cut trees, ship them to China, CNC machine, and, ship back to the US.
Cheaper prices for inferior quality. And our jobs.
Yep. We need import tariffs to create a fair trade environment. The entire world is subsidizing, protecting their own markets, and then dumping on the US manufacturing sector.
Aren’t there some sort of laws involved when a company does something such as this? Like notifications to state government due to the possibility of exploding the unemployment insurance coffes?
This is terrible.
Sorry. I’m all out of sympathy.
Inflation is 9%. We’ve been in overseas wars continuously either in person or by proxy for many years, the schools are preaching transgenderism without pause, but 99% of these blue collar workers still vote for the Dems, worship at the altar of the TV set so much that their foreheads should have a display that says “Updating” when they watch, and couldn’t be separated from their smart phone without having withdrawal pains.
What ye sow……………….
Where did you get that 99% Dem vote statistic? Mississippi is a red state and has been for decades.
Where did you get that I said anything about Mississippi?
If you’re out of sympathy, then there’s a good likelihood you’ve never been laid off.
I was, six years ago, after working for the same company for 27 years. I had a community-wide sterling reputation in my field, so was not let go “for cause.” Actually, no reason was given, but I was fighting cancer. Got laid off in the middle of chemo treatments. No COBRA.
The firm had hired a new CFO who spent her time behind a closed office door with the shutters drawn. She was therefore distrusted, and it turned out with good reason.
10% of the work force was let go on the same day without notice. I was not permitted to gather up 27 years’ worth of “stuff” accumulated at my workspace and was escorted to the elevator like a criminal.
That day is right up there in my top five worst days.
I would not wish this on anyone, regardless of political persuasion.
And that includes you. Said with some reluctance.
I was laid off many times in my 50+ years in the work force and that was back in the days when wages were so low (<$2.00/hr) that building any savings was impossible.
Instead of depending on my minimal skills to carry me, I kept learning and got to the point where it was those who made minimal effort to get ahead who got laid off.
Will, I hope you never experience such a hardship. Regardless of anyone’s politics, this company is violating laws by doing what they’ve done (read WARN act), and likely blindsided hard working manufacturing, warehouse, transport and office staff. 36 hours before Thanksgiving. With no warning and no way to continue their health insurance. And all this by text or email.
These are people who got out of bed everyday and went to work doing something productive when so many others are not. I hope they all get picked up by other companies who are struggling to find workers. And I hope they have enough to eat, enough for their heating bills and that they are able to find some comfort and hope as they sit down to Thanksgiving dinner tomorrow. Be a human – show some compassion.
Just wondering if they have offshored any production recently?
The Warren Act requires the employees be given 60 days notice. Perhaps after assets are liquidated they will have to pay severance to employees. Very sad. The timing stinks. The email is shockingly callous.
Unbelievably sad news for 2,700 workers, their families, and their communities! As the daughter of a manufacturer’s rep, who worked with small companies throughout Ohio, Pennsylvania, and New York, in the 1970s and 80s, I KNOW how much these jobs matter and how every one that is lost is another death knell to our country – and I seethe with anger at the callousness of “management” AND the political chattering classes (on BOTH sides of the aisle) who do not give a da*n about any of these people or what this announcement will mean to tens of thousands of people in Mississippi and North Carolina whose jobs were also tangentially connected to this company!
Why do the letters FTX seem to pop in my head. So suddenly out of the blue. Tip of the iceberg anyway for what FTX will reveal. Maybe overextended in FTX and got monkey hammered.
Here’s a July article showing that the company was in distress in July: https://www.yahoo.com/news/united-furniture-plans-mass-layoff-064900009.html People were laid off in July and August but at least they got notice of it in advance!
The WARN Act is mentioned in the article:
The pending closure is the second Worker Adjustment and Retraining Notification Act layoff notice involving a company with a High Point presence so far this year.
“Second, while understanding that an unexpected loss in operational funding is usually what leads to these “immediate” types of total operational collapse, most often the result of a lender backing away from a desperately needed continuation loan”. It is usually worse than that. It’s a trap set by lenders to gain control of a company on more favorable terms. Lots of companies like this float their day-to-day expenses with cheap credit. One of the reasons for raising interest rates so dramatically is to strangle those companies and bring them to their knees. This one’s not in any danger of going away most likely. But it will be highly restructured and wages will be massively lower than what they were.
And many more!
https://www.forbes.com/sites/brianbushard/2022/11/22/hp-cuts-more-than-4000-jobs-here-are-the-biggest-us-layoffs-this-year/?sh=7a4fa049a3dc
WOW! That is one long list of some major companies cutting their workforce… ugh
Can anyone explain why they wouldn’t complete deliveries? At least some of those customers had already paid in full. For a company that’s broke it seems strange that they’d choose to refund money on a product they made a profit off of.
One of the articles said that even the truckers found out they wouldn’t get paid. At least that was my understanding of it.
They won’t refund the money. If they get the goods back, they will get sold in an asset sale. Customers would have to get in line behind all the other creditors if there is a bankruptcy, so it is better for the company to have the assets.
Oh wow.
Why would you assume they will refund any $?
Right, usually there’s a “net 30” or “60” and a lot of revolving credit.
The manufacturer makes the good and sells it to the retailer. The retailer says, I will pay the manufacturer (plus nominal interest) in 60 days. That gives the retailer a short time to sell the product for cash to a customer, and use that cash to pay back the wholesaler. So, the manufacturer gets an “accounts receivable” of their books for the IOU from the retailer.
So, it is quite likely that the goods on those trucks were “assets” that weren’t fully paid for yet. It would be better for the bankruptcy process to halt the transfer rather than create more accounting creditors.
Combine that with our “going into a recession” meme these days. Lane probably projected very slow holiday sales, with long payback from the Raymore & Flannigans out there (or maybe some more retailers going bankrupt themselves) and with Bidenflation killing the cost of good bottom line, the accountants said it would be impossible going forward and they need to restructure immediately.
They’re assets on the books until delivered. Assuming either bankruptcy and/or an asset sale, they belong to the trustee or the buyer at this moment and thus can’t be legally delivered to another entity. The purchaser becomes a creditor on the books of the surviving debtor with a claim on what is most likely low order zilch.
Most such deliveries are not paid in advance so the loss at the receiving end is likely minimal.
Nothing crooked here, just basic business law.
The dismissal letter is very carefully written, in my opinion, probably reflecting a last minute failure to renew a revolving credit line, or a last minute desperation total asset sale to a different entity. It’s brutally short and to the point, undoubtedly written by a lawyer paid to protect the firm against future suits. The WARN and COBRA laws, plus adjunct State statutes would only apply if there is a continuing entity with assets to effect such. A bankrupt entity, or one with no assets, could do neither. The lawyers will have field day.
It’s cold and brutal and legal. Someone will make a lot of money off the pieces. The lawyers will have a good holiday looking forward to the inevitable fortune in fees that will result no matter which side they represent.
The great sellout of our manufacturing core continues apace. Pray that ’24 is a Maga election. Else this is the future.
What a contrast with my former employer, Ford Motor Co…back in the days of the Great Recession after the crash of 2008, both GM and Chrysler accepted federal handouts to stay afloat. Ford did not, but chose instead to go into hock up to its eyeballs to stay alive. Even the usage rights to the blue oval trademark were on the table. Despite all this, the company was as gentle as it could possibly be, in regards to unavoidable employee layoffs. A generous buyout package was offered, which many gratefully accepted as we all knew how dire the situation truly was.
I don’t know if Ford has “gone woke” in the years since. I can only say that it was outstanding in terms of family focus during the many years I was there, and young employees did trend towards producing larger families as a result.
Chrysler did repay billions, not sure if they repaid all they received though.
I believe Lee Iacoca (sp?) made sure it was a 100% pay back.
It has been some years since I travelled up there, but, it was sad to see the enormous furniture galleries outside High Point, Greensboro and Winston Salem shuttered, or, for those still open filled often with inferior products from overseas and dusty left over pieces no one wanted.
I used to take an entire day once in a while to wander the galleries. It would literally take days too see all of them.
I am sorry for the families. But, this has happened time and time again over the past few decades as the “US political and financial leaders” took us globalist.
I have my parents Thomasville Hand made Solid Oak bedroom suite. Maybe 7-8 k. Moving tried to sell it, not a call, not high priced either. 100.00 bucks for headboard, 200 , 400 for large dresser glass tops on it to with a large trifold mirror 300.00 NOT one call. People are Watched the other adds, nothing is selling. Classic cars on ebay are dead as a doornail.
The Union strike on the trains soon, oil is shipped rail now because of Biden. Supply chains inventory. Someone said I can afford it. I replied you can’t buy what is not on the shelf.
My childhood in the 1960/70s…we had morals, we were a manufacturing powerhouse such as the world had never before seen and the quality of music from that era will NEVER be equaled!
Thank you for a tear jerking reminder of what we had and what we’ve lost…
All true. I used to do the same.
Keep in mind the Fed is resetting the economy by executing two projects currently.
Main Street– Raising interest rates which impact Main Street workers as their employers operate with funding indexed to the Fed prime interest rate. We are several months into this strategy
Wall Street– Quantitive Tightening which reduces asset prices. This just really began in September. We will not see this with layoffs rather in your 401k plan as the stock market returns to a legitimate value.
Both will ravage the middle and bottom income earners as the wealthy await those people to demand a new government.
Horrible news. Excellent analysis. Beautiful prayer. Thank you. God, please help these people. 🙏🏻🙏🏻
But but but Joetard sats the economy is doing great under his hahaha leadership FJB.
I honesty thought they only made fat people clothing.
Lane Bryant is still in business.
Amen,,nuff said
Low below low.
Does this have to do w/curly head boy and his freaky girlfriend?
Quite possible.
Go into a furniture store and look at where all the manufactured furniture comes from.
United/Lane will soon be under a different name and manufactured where most is now manufactured.
China
American-made hardwood furniture is generally priced high—worth the money, obviously, but out of range for a huge percentage of actual Americans. That wasn’t true back when my parents were newlyweds in 1960, or first-time homebuyers in 1970. Average folks could afford a suite of oak for the master bedroom, cherry in the dining room, and maple for the kids’ rooms, all on layaway.
Good times.
Weird. I missed this news on idiot KJP’s talking points cheat sheet.
I wonder if she’ll send out a revised version…./s
These people are skilled! There will be such a demand for used furniture repair—they won’t be able to fill it. NEVER feel sorry for a blue collar worker! They deserve and have earned esteem.
How much did they have in FTX?
Ahh. The ole Christmas Firing. Never ceases to amaze me.
It’s an American Classic. Surprised they held Covid off till the holidays were over—so out of character to not ruin lives ahead of Christmas.
Thank you to the posters down stream which posted the information about asset stripping!
In this unsettled time, the extra and background information is useful for assessing the changing economy.
Didn’t know that about Romney as well…
Blessings and prayers to all the hard working people and families affected by this mass layoff.
You didn’t know that about Mittens?