Report: PeopLoungers closing
Heath E. Combs -- Furniture Today, June 15, 2009
MANTACHIE, Miss. — The Northeast Mississippi Daily Journal, citing unidentified industry sources, reported last week that motion upholstery producer PeopLoungers is closing for good.
Industry sources told Furniture/Today that it appeared PeopLoungers wasn't accepting any new business.
Calls to the PeopLoungers administrative offices in Mississippi were referred to The Finley Group, a turnaround firm based in Charlotte, N.C., that had been managing the manufacturer. Finley officials did not return phone calls.
Capital Business Credit purchased PeopLoungers' assets out of bankruptcy court for about $6.5 million in late 2007 and hired Finley to run the operation. PeopLoungers had filed for Chapter 11 bankruptcy in 2007 under pressure from its lenders. At the time, it owed its top 20 creditors nearly $5.7 million.
After the sale, Finley closed the company's 430,000-square-foot Nettleton, Miss., plant and consolidated operations into its 175,000-square-foot facility in Mantachie, about 20 miles away. The Daily Journal said the Mantachie plant, with 100 to 150 employees, also was closing.
Larry Crink, who joined the company last year as executive vice president of sales and marketing last year, declined to comment last week on the company's status or to say whether he was still with PeopLoungers.
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