Solid Wood Cabinets, a cabinetry retailer based in the Northeastern U.S., has abruptly closed all 12 of its locations in Pennsylvania and New Jersey. On its website, the company said its secured creditor has liquidated all its assets.
"Unfortunately, The Solid Wood Cabinet Company, LLC. has been forced to close down its business operations immediately and all of its assets will be liquidated by the secured creditor. Customers should seek advice from their credit card or financing provider regarding merchandise that has not yet been received.
Solid Wood said a "perfect storm of issues" forced its hand. One of those issues was Chinese tariffs.
"Unfortunately 2019 created the perfect storm of issues for our company starting with the imposition of tariffs of up to 25% on the cabinets that we import from China. This was then compounded by an Anti-Dumping petition filed by a group representing domestic cabinet manufacturers. This caused the vast majority of the Chinese factories to simply stop producing product for the US market and either focus on other markets or commence the relocation of their factories to other Asian countries.
"This was catastrophic to us and meant that our supply of cabinets virtually dried up leaving us to find alternative products domestically. An affirmative preliminary finding on October 3rd by the US Commerce department meant that Anti Dumping duties of up to 262%, with an average of 39%, were applied to our products in addition to the 25% tariffs that were already in place."
The company says it subsequently updated its selection and found a U.S. importer. But it says its efforts weren't enough.
"Despite the best efforts of all of our employees, the delays in supply and increases in our product costs resulted in a reduction of sales. This was also further impacted by negative customer reviews as we tried to fulfill previously sold orders for product that we could no longer get from the Chinese factories. Although we tried until the last days to reorganize our business affairs and obtain the support of our creditors, vendors and potential new investors we were sadly unable to achieve this objective."
Solid Wood Cabinets calls itself a “factory-direct” retail company, established in 2002, that has sold over one million pieces of cabinetry in New Jersey and Pennsylvania. The company's products are sourced from its factories worldwide to its 160,000 square foot assembly facility. It built more than 1,500 cabinets each week.
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