New deal sealed for Norwalk
Investors plan to revive manufacturer
Gary Evans -- Furniture Today, September 29, 2008
NORWALK, Ohio — Investors closed a deal late Friday to buy upholstery maker Norwalk Furniture, and emerged with a new company this morning called Norwalk Custom Order Furniture, according to reports.Details of the sale were not disclosed, other than that the sale had the financial banking of the state of Ohio, which had offered a low-interest loan of $1.86 million to keep the company in business.
The purchase was for the company's buildings, equipment and other assets in Ohio, and does not include Norwalk factories in Mississippi and Tennessee, according to the Norwalk Reflector.
Calls to the company's main corporate number Monday morning reached a recording.
According to the Reflector, Tom Bleile, a local businessman serving as spokesman, said that about a dozen investors, whose names were not disclosed, purchased the company.
According to Bleile, Dan White, a former state representative and local businessman, will serve as interim CEO while the company ramps up production, starting as early as Tuesday.
The Gerken family, longtime owners of Norwalk Furniture, is not part of the new company, the paper said.
The Reflector quoted Bleile as saying that Norwalk Custom will hire 150 to 200 employees as a new company, treating former Norwalk employees as new hires. Details on how to apply for jobs were expected to be released Tuesday. There was no word as whether there would be the same union representation that employees had under the old Norwalk.
"The most important aspect is getting the people back as soon as possible," Bleile told the Reflector. "We have to restore the confidence of our customers. We have destroyed some of those relationships."
The old Norwalk, which once had sales said to be over $100 million, closed July 18 after lending partner Comerica called its $11 million credit line. The company went through a couple of employee call-backs until shutting down a few weeks ago.
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Will the new Norwalk be honoring the warranties of old customers?
Tina Vass - 2009-16-6 21:28:14 EDT -
When the going gets tough the tough get going. I commend the people behind this Norwalk deal for not giving up. The next few months are going to be painful. but if government, labor and ownership can stop dwelling on the problem and just focus on the solution we will all be better off.
Robert Saquet - 2008-30-9 07:16:10 EDT -
let's wish the new owners good luck in this venture!
Selena Levine - 2008-29-9 08:00:29 EDT
