Spring Air bankruptcy may not be good news for ex-workers
The “old” Spring Air — the company that shut down its factories without warning about a month ago and put about 700 people out of work — finally got around to filing for bankruptcy a few days ago.
But the filing raised a lot more questions than it answered. And unfortunately, American Capital Ltd., the publicly traded equity firm that owns the company, has declined to answer questions from Furniture/Today — just like it has rebuffed queries from its former employees.
It’s still not clear, for example, how much money it received from selling the rights to the Spring Air name to a company headed by former licensee Ed Bates. Plus, there are thorny questions about inventory, warranty claims, and money owed to suppliers that need to be sorted out.
Some of the questions could be answered on June 16, when the company has to submit financial statements and related data to the U.S. Bankruptcy Court in Wilmington, Del. But frankly, I can’t help but believe the filing was a defensive move related to the class action suit filed in U.S. District Court in Tampa, Fla., that accuses Spring Air of violating the Worker Adjustment and Retraining Notification (WARN) Act when it closed all those factories.
The suit originally named only Spring Air Mattress Co. as defendant, but it was recently amended to include American Capital and several related entities as defendants.
It wouldn’t surprise me if American Capital argues that since Spring Air is now bankrupt, it meets the “faltering company” standard outlined in the WARN Act, and couldn’t give the required 60 days advance notice for large layoffs or plant closings.
That’s certainly not good news for Spring Air’s former employees, who already have been subjected to more than their share of shameful treatment.
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Lumpy commented:
Several years ago after presenting a new advertising campaign, we were told by the then CEO of Spring Air, "That's a very creative idea. Unfortunately, we're not a very creative company."
Very true back then. Very true today. With 40 years in the ad biz, Spring Air may well be the worst client I have ever worked for.
Katherine C commented:
I am sorry yet another company is possibly never going to be heard from again...I knew one of their reps for many yrs (SC) and have their mattresses.What SP Air has done has been done by MANY..there is now new blood coming onto the scene as it always does,to begin a trust and believe relationship based on integrity in all bedding and furn areas...to my mind it is still more profitable when employees have a stake in the company instead of being "company men/women".Loyalty is admirable but ties the hands of truth tellers and good business based decisions.Not every co will think that way...but new days require new ways(OLD ways,too,if based on respect and quality operating..not on covering up mistakes to save face...we've ALL been THERE.Get the bad over with and face up..We as individuals have to so must companies.There are still stable companies out there,also, but it seems they were re-tooling all the time..That is traditional forwardism...My heart feels for all involved.
Investor aka Big Buyer commented:
Investor, you talk like you are an angry insider. Do you buy bedding for a retail chain in the South and extort as many freebies as you can get from suppliers? I bet you like to fish?
Ex Wife of Spring Air employee commented:
MBA formula:
Sales-Cost= Profit.
No sales- High Costs+High Debt= No MORE Company.
Investor commented:
You are correct, Observer. After Antinori left leadership was transparent at the company all the way to Cumbow, the worst of the worst. And let's not forget the ACAS team assigned to Spring Air. What a bunch of hot wind they blew. They were probably worse than the Spring Air management. Totally worthless.
Hey, I hear that Damewood is in his new position doing the same thing he did at Spring Air. Selling a $500 bed for $400 and telling everyone he will make it up on volume. Sadly, I think he really believes that.
An Observer commented:
Investor, you're not giving any recognition to the bumbling, stumbling idiots who left or were forced out before the final days. Please give them their due. After all, they helped steer the ship to this disaster.
An Observer commented:
Investor, you're not giving any recognition to the bumbling, stumbling idiots who left or were forced out before the final days. Please give them their due. After all, they helped steer the ship to this disaster.
Investor commented:
Mr. "spring air ex ex ex", (HG),
You have a consistent message for Mr. Robinson. I think the truth is that you are afraid that the new Spring Air will revive itself and become competition for you once again. That is why you would like to see Mr. Robonson stay away. You are weak now, and have always been so. I don't see your company burning up any floors.
Investor commented:
The investor knew from the day it closed it was filing Chapter 11 so it was not a defensive move. I can bet that there are plenty of emails, if anyone would bother to look, that would show at least 60 days prior to the closing, ACAS anticipated the closing and was debating if and when to issue the WARN notices. I bet there are plenty of spreadsheets changing e-mail boxes with salaries and other info that were used to calculate how much the WARN issue would cost. If my assumptions are true, does that mean ACAS is guilty of working to avoind the WARN payments to the employees along with other compensation items that would have been due them?
ACAS and Cumbow foolishly held out half-hearted hope that a deal could be worked out, which obviously did not happen.
Larry, ask IBC their opinion of why the deal they tried to make to buy Spring Air fell through. That should give you a good picture of the bumbling, stumbling idiots who presented themselves as investors and executives. Pitiful little people.
HEY BILLEEE commented:
TRIPLE YIKES! IT IS LIKE GROUNDHOGS DAY!
spring air ex ex ex commented:
Oh vey! When does or will this end? This company has nothing left to boast or salvage. When you lose multiple times in the industry by lying to customers, vendors, and more importantly, the internal system that supported the name, WHY WHY WHY even try again to make a come back? Mr. Robinson, stay in Australia and chase the kangaroos there; at least you had a job!
Larry Thomas commented:
That is an excellent question, Observer. I'm not aware of any bidding process, but I will add that to my list of questions that I hope somebody at American Capital will answer.
An Observer commented:
Were the naming rights put out on any bidding process in order to get the maximum amount of money for workers, creditors, etc? Larry, that might be an interesting avenue to persue
spring air ex commented:
Sad when a company as large as ACAS will go this far to steal what is due employees. The same people that worked many hours overtime, trying to help them save their investment. In the big picture to them its a fairly small amount , I can only assume this is arrogance.
