KREAMER, Penn. – It appears Wood-Mode has a buyer.
Bill French, the owner of modular home builder Professional Building Systems, has signed an agreement to purchase the assets of Wood-Mode, which suddenly closed last May.
“It will be a challenge in many ways,” Bill French, owner of Professional Building Systems, told PennLive. French plans to reach out to all 938 laid-off Wood-Mode employees for potential employment. Plans are to start small - hiring just a few employees at a time - and eventually hire between 200 and 500 workers.
Wood-Mode's 938 employees were shocked when they were suddenly out of a job. They were informed through a letter, hand-delivered to employees as they arrived to work, that said the company had been "seeking financing and other alternatives, including new capital and a possible sale transaction that would have enabled it to continue operations." That transaction fell through.
The news shook the industry - launching lawsuits from former employees, leaving dealers around the country in a state of limbo - and frustration mounted. The county struggled to find work for the displaced employees and dealers voiced their disappointment in the company's lack of communication.
French told PennLive that he will reach out to dealers, informing them that the purchase should be completed in the next two weeks. He hopes to convince dealers who've gone to other manufacturers to return to Wood-Mode.
Dealers were hit hard after the closure. Wyoming-based Chorba's Cabinet Shop has been an exclusive Wood-Mode dealer for 25 years.
"I'll be 63 years old," owner Joe Chorba told the Daily Item in an interview. "Now I have a showroom that's worth nothing. To put that into perspective, they put me out of business. To start over at 63, I would need $100,000 to start again. I'm not about to go into that kind of debt."
Chorba said he lost three orders in the two days following the closure, which came unexpectedly for him too. Wood-Mode has dealers around the United States, Canada, and even South America.
"I have two large orders that are 90 percent complete in warehouse that were due to ship this week and next week," Lynn Colangelo of New York-based Classic Kitchen Cabinetry Inc. wrote to us in an email. "They have $16,000 from me representing a 50 percent deposit."
Another dealer, Lee Ann O’Daniel, owner of San Luis Kitchen Co. in San Luis Obispo, California, has written Gov. Wolf urging a focus on getting the plant reopened, PennLive reported. O-Daniel said her company may have to ditch an order that's worth $30,000 and that's 95 percent complete.
PennLive reported that current Wood-Mode owners Brooks and Robert Gronlund will not be involved in ownership after the sale. Some employees have said they would return to Wood-Mode.
Many employees felt betrayed by the company's lack of communication. The employees were forced to leave the plant without some of their personal belongings and weren't allowed to return until a month later. They were notified through an automated message. Four days later, employees learned their health insurance was being terminated.
Two employees are suing the company after they were laid off without adequate notice.
William Swede and Curtis Tego filed separate lawsuits against the former cabinet maker, alleging the company failed to provide the 60-day written termination notice required under the Worker Adjustment and Retainment Notification Act (WARN). The lawsuits are to represent all affected employees and seek damages equal to what the employees would have received if they worked an extra 60-day period.
The county is working to assist affected employees. The industry has held job fairs and reached out to employees directly. At least seven employees have been hired by the nearby Apex Homes, which hopes to hire up to 30.
Bella IMC has offered to assist Wood-Mode dealers.
Wood-Mode was listed among the top 10 cabinet companies in the latest FDMC 300, a listing of the top North American wood products manufacturers. The company produced semi-custom and custom frameless and frame cabinetry, under the Wood-Mode and Brookhaven brands.
Professional Building Systems, headquartered in the nearby Middleburg, is a producer of custom modular residential, multifamily, and commerical housing.
Have something to say? Share your thoughts with us in the comments below.