Barcalounger’s motion furniture manufacturing plant in Martinsville, VA, was not abducted by aliens. It’s in financial distress, shelling out more money to make motion furniture than it is rakes in to sell it.
To put it more blunt: Barcalounger is bankrupt and seeking protection from its creditors.
This all adds up now, but we expected a more complex response after learning that Barcalounger had suddenly shut down its domestic plant on April 23 and sent its employees unceremoniously packing. Local media was unable to reach anyone at Barcalounger or its parent company American of Martinsville, for comment. When the company finally did reach out to the media, it said little about the plant’s fate, merely stating that Barcalounger, which also has products manufactured in Southeast Asia, would continue to be a viable brand.
Now, one month after the company closed its domestic plant, it has made things clear.. Not only is Barcalounger broke, but it's assets are for sale.
Just as we begin to see more positive signs on housing construction and home remodeling, we learn of not only the closing of Barcalounger, but the intended closing of Mill’s Pride in Waverly, OH next year, and Stanley Furniture’s “adult” furniture plant in Stanleytown, VA.
The key difference is that Masco came clean about Mill’s Pride early on , as did Stanley about its decision to shut a plant. American of Martinsville or Barcalounger might have had its reasons to keeping silent. But now that the cat is out of the bag, their initial silence is a bit of an embarrassment.
As we continue to point out. Things are getting better, but they may not get better fast enough for all. Just ask the folks at Barcalounger.. Just don't hold your breath for a quick response..
Check out these recent related stories:
Barcalounger files for Chapter 11
Barcalounger plant in doubt, but not brand
Mystery shrouds Barcalounger plant closing
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