A Mississippi-based firm that had turn into one of many largest furnishings firms within the nation laid off practically its total workforce through e-mail and textual content message two days earlier than Thanksgiving.
About 2,700 staff, most of whom reside in northeast Mississippi, together with others in North Carolina and California, misplaced their jobs early Tuesday. The digital announcement was made in a single day, whereas many slept.
Shortly after the heartbreaking announcement, a supply driver was arrested by police in Mississippi and charged with attempting to take away furnishings from his truck. He has not been recognized and no additional particulars have been shared.
United Furnishings Industries despatched a memo through e-mail and textual content message to staff late Monday night informing them to not report back to their shifts on Tuesday. The layoffs come as financial consultants predict a recession by 2023.
The memo stated the layoffs had been made on “On the route of the Board of Administrators … we remorse to tell you that resulting from unexpected enterprise circumstances, the corporate has been pressured to make the troublesome choice to terminate the employment of all of its workers, efficient instantly on November 21.”
The memo didn’t present particular particulars about what led to the layoffs, solely referring to it as a “troublesome and sudden scenario.” Furnishings As we speak, an trade journal, reported that United fired its CEO and changed him with present CEO Todd Evans.
The memo didn’t present particular particulars about what led to the layoffs, solely referring to it as a “troublesome and sudden scenario.” Furnishings As we speak, an trade journal, reported that United fired its CEO and changed him with present CEO Todd Evans (pictured)
The corporate’s chief monetary officer and vp of gross sales in June had been additionally launched. Evans was beforehand president of Normal Furnishings, an Alabama-based firm.
A second e-mail knowledgeable the employees that their “termination from the corporate is anticipated to be everlasting and all advantages will terminate instantly with out the availability of COBRA,” referring to the federal regulation that offers individuals who lose their jobs a chance to maintain their employer-sponsored medical health insurance protection below sure circumstances.
Some workers had been sleeping soundly when the emails landed of their inboxes. Others by no means noticed the emails earlier than going to work.
Firm drivers out making deliveries had been informed to right away return to a United Furnishings location to drop off their vans, most informed they might be paid by the top of the week.
About 2,700 staff, most of whom reside in Northeast Mississippi, together with others in North Carolina and California, misplaced their jobs Monday
The Each day Press reviews {that a} United Furnishings Industries driver was arrested in Monroe County, Mississippi, for trying to take away furnishings from his truck.
Audrey Garth, 37, is charged with grand larceny. Authorities say they recovered furnishings from a close-by car parking zone in reference to the arrest.
At the least one former worker, Toria Neal, has filed a lawsuit towards her former employer, saying the abrupt termination violated federal regulation as a result of staff weren’t given 60 days discover earlier than the corporate ceased operations.
Neal had labored at UFI for greater than eight years. She accuses her former employers of getting violated the regulation on adjustment and retraining.
An lawyer representing Neal, Jack Simpson, informed Freight Waves: “Pursuant to the WARN Act, the workers of United Furnishings had been entitled to both 60 days’ discover or 60 days’ severance pay – neither of which was supplied.”
Simpson added, “If we appoint a category counsel, we look ahead to vigorously investigating United Furnishings’s actions and looking for as a lot compensation because the terminated workers are legally entitled to.”
United had turn into one of many largest furnishings firms within the nation. The Northwest Mississippi Each day Journal reviews that its competitor Ashley Furnishings has now begun recruiting former United workers
United Furnishings Industries staff. Some workers had been sleeping soundly when the emails landed of their inboxes. Others by no means noticed the emails earlier than going to work
Whereas one other former worker informed Freight Waves: “We’d go over to our pals’ homes and say, ‘Hey, that chair or piece of furnishings was made in our manufacturing facility.'” We actually took delight in our work – and that is how we turn into handled.’
In a separate interview, a former worker of the corporate’s California operations informed VVNG, “I do not suppose any of us are ready for this, particularly proper earlier than the vacations. It is positively going to have an effect on my household and my quick plans, and I do not know who to show to or what to do now.’
The Northwest Mississippi Each day Journal reviews that Ashley Furnishings has begun recruiting former United workers.
Lee County Administrator Invoice Benson informed the newspaper that the area people was caught off guard by the layoffs. Benson stated, “I do know the board is able to do every little thing it could possibly to help within the effort to put these people.”
Whereas in neighboring Monroe County, Chamber of Commerce Govt Director Chelsea Baulch stated, “We’re devastated and in prayers for all these affected. We’re working and partnering with our financial growth pals at CDF, Three Rivers, WIN Job Middle and Speed up MS to to assist distribute as many assets and out there job data and fast response.’
The corporate’s communications crew didn’t instantly reply to a request for remark.
Furnishings firms that noticed report gross sales throughout the pandemic have suffered because the return to normality. United laid off 490 workers in July earlier than sacking its high executives, adopted by a majority of the workforce
Consultants speculated that the corporate’s demise may very well be linked to points reminiscent of inflation, the continuing scenario in Ukraine and excessive fuel costs, in line with the Each day Press.
A former United advisor within the firm’s North Carolina operations, Robert Cottam, informed Greensboro.com: “Numerous furnishings producers had gangbuster gross sales in 2021 with the pandemic. However when these inflationary elements hit, it actually put stress on discretionary spending for many who purchase promotional furnishings.’
United Furnishings Industries, based mostly in Okolona, Miss., makes furnishings below its model and the Lane House Furnishings model, which it acquired in 2017 from Heritage House Group LLC for an undisclosed sum. Lane was based in 1912 in Virginia and merged with Tupelo-based Motion Industries in 1972.
Along with eight crops in Mississippi, United additionally had six crops in North Carolina and one in California. Layoffs occurred on the North Carolina and California places.
In July, the corporate laid off 490 workers.
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