SAN ANTONIO, TX - Cardell Cabinetry has notified the Texas Workforce Commission of the layoff of 903 employees, more than a week after the semi-custom cabinet company shuttered its doors.
The TWC received the WARN (Worker Adjustment and Retraining Notification Act) notice on Sept. 17. Although federal labor laws require business with more than 100 employees to provide at least 60 days notice of plant closures or mass layoffs to the state, a lawyer for Cardell told the San Antonio Express that the circumstances were not "reasonably foreseeable," thereby making it exempt from early notification under the "failing company doctrine" portion of the act.
A possible class action suit against Cardell for WARN notice violation is being investigated by Haverford, PA-based law firm of Chimicles & Tikellis.
Cardell Cabinetry shut its plant Sept. 9, leaving workers turned away at the gate. The 37-year-old cabinet company had debts of $45 million and had been put in receivership late last month. Compounding its problems, in August Cardell was also cited by OSHA for combustible dust and other safety and health violations.
Founded in 1976, Cardell Cabinetry was acquired by Bill Tidwell in 1977. In 2010 H.I.G. Capital acquired a significant equity stake in the company.
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