NJ Flooring Company Lays Off 120

WAYNE, NJ — According to NorthJersey.com, Wayne-based Hoboken Wood Flooring LLC, the country’s largest independent distributor of hard-surface flooring, laid off 120 workers, taking further steps to close the business after 77 years of operation. The company cited an inability to find additional funding to allow the company to continue operating as reasons for the move, while industry experts speculated that the distressed housing sector played a major role as well. The latest lay-offs follow ones beginning in August 2006 that have affected over 1,000 workers, leaving about 250 employees remaining with the company

Hoboken, which distributes its products through 26 locations and reported revenue of $400 million in 2006, has experienced considerable activity in recent years, dealing with such issues as: a majority equity investment in 2005 by a private equity firm; an unsuccessful expansion into the Texas market; a merger and expansion into the Mid-Atlantic region; an end to a distributor relationship in Florida; and an unusual amount of turnover among its top executives. Company executives would not comment on the possibility of a future bankruptcy filing. Read more.


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