SAN ANTONIO - Cardell Cabinetry has closed its doors without warning, leaving approximately 900 workers unemployed.
News reports say workers arrived at the 37-year-old cabinet firm Monday morning, but were not allowed on the premises. The closure of all Cardell Cabinetry's business operations was confirmed Tuesday in a statement from attorney Howard Marc Spector, Spector & Johnson PLLC.
Sources cite the economy and mounting debts for the closure. Cardell Cabinetry had debts of $45 million and had been put in receivership late last month. According to Spector, the appointed receiver, "the company owed its unsecured creditors more than $15 million and its lenders in excess of $30 million, and it did not have sufficient liquidity to manufacture products to meet outstanding orders."
“These are unfortunate circumstances, but the harsh reality is that the company cannot sustain itself and meet its business and financial obligations,” Spector said in a statement provided to Woodworking Network.
Compounding its problems, Cardell Cabinetry last month was cited for combustible dust and other safety and health violations by the U.S. Department of Labor's Occupational Safety and Health Administration. The semi-custom cabinetry firm was facing a penalty of $267,434 for 29 violations at the San Antonio, TX, facility.
According to its website, Cardell had more than 900,000 square feet of combined manufacturing space between its San Antonio facilities and a secondary manufacturing facility located in El Campo, Texas. The closure, which affects all business operations, was effective Sept. 8.
The company was a longtime member of the Kitchen Cabinet Manufacturers Association. "It's unfortunate," said Dick Titus, KCMA executive vice president, of Cardell's closure. "They have become a major casualty of the economy."
The statement from Spector said it will continue efforts to sell the company's assets.
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. Other wood-related companies in which H.I.G. also has equity positions include: American Hardwood Industries, a flooring and sawmill operator; and Innovative Building Systems, which produces modular homes. In addition, H.I.G. previously invested in Republic National Cabinet, a holding company for Cabico Custom Cabinet, Sunshine Kitchens, Republic Industries and Legacy Cabinets. The firm's investment in Linden Lumber also was realized, and H.I.G.'s equity position in the lumber mill purchased in November 2009.
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