North Carolina manufacturer Linwood Furniture to liquidate
September 6, 2012-- Furniture Today,
WINSTON-SALEM, N.C. — North Carolina case goods manufacturer Linwood Furniture's assets will be liquidated, following the approval Wednesday by a U.S. bankruptcy court judge here to convert its case to a Chapter 7.
According to the Winston-Salem Journal, Jeff Schwall, Linwood's president and CEO, said about 100 employees would lose their jobs.
Schwall could not be reached for comment Thursday morning. The U.S. bankruptcy court administrator filed a motion to convert last month due to continuing losses.
The motion followed Linwood's failed attempt in August to sell its assets, which drew no bids. The company then halted most of its production pending the results of Wednesday's hearing.
Linwood filed for Chapter 11 bankruptcy protection in March. It launched in 2006, with the intention of keeping production of furniture designed by North Carolina artist Bob Timberlake in the former Lexington Home Brands Plant No. 2 in Lexington, N.C., which Lexington had closed the previous year.
The last few years saw changes in ownership stakes and management at Linwood. The company tried to become an OEM manufacturer for hospitality furniture companies, which resulted in a high volume but low margin business, which helped drive it into bankruptcy.
In its original Chapter 11 filing, the company listed about $3.7 million in assets and $6.9 million in debt.
Timberlake and Century Furniture announced a licensing partnership in 2011, ending a 20-year association with Lexington.
The Linwood factory had continued to make some Timberlake product for Century, as well as pieces for Calvin Klein and CR-Home.