NC furniture maker cuts over 120 jobs citing Hurricane Helene damage, insurance battle
A North Carolina furniture company is downsizing resulting in 121 people losing their jobs due to Hurricane Helene damage and a battle with its insurance company.
E. J. Victor Inc. layoffs were effective Friday, Nov. 22, according to a Worker Adjustment and Retraining Notification Act (WARN) received recently by the North Carolina Department of Commerce. The Morganton facility is at 110 Wamsutta Mill Road, about 75 miles northwest of uptown Charlotte.
“This layoff is the result of significant damage to the production facility from tropical storm Helene and our inability to rebuild due to non-payment of our casualty insurance claim pending litigation,” E. J. Victor CEO Richard Oliver Jr. said in the notice to the state.
The Morganton offices were flooded, Oliver said in a message on the company’s website. Layoffs began Nov. 15, according to the WARN notice.
Hurricane Helene hit North Carolina Sept. 27, devastating the western part of the state with historic rainfall resulting flooding, landslides and strong winds. At least 103 people died, according to NC Department of Health and Human Services.
E.J. Victor filed a lawsuit Nov. 7 against Fireman’s Fund Insurance Co. after it denied the claim.
The storm “destroyed much of the building, inventory, furnishings and fixtures,” E. J. Victor said in the lawsuit filed in federal court in the Western District of North Carolina in Asheville.
The insurance company said it “cannot find coverage for the flood damage portion of the claim,” court documents show. E. J. Victor is seeking over $75,000 in damages.
The Burke County high-end furniture company founded in 1990 focused on historical 18th and 19th American reproductions, according to E. J. Victor’s website. The company has a showroom in High Point.
E. J. Victor officials did not respond to a request for comment Friday by The Charlotte Observer.
Other recent NC furniture industry layoffs
North Carolina has the nation’s largest furniture manufacturer workforce, with over 35,000 employees, according to the N.C. Department of Commerce. But the state has been rocked by several large closings and bankruptcies with hundreds of layoffs in the embattled industry.
In August, Florida-based retailer Badcock Home Furniture & More said it was closing all of its 380 stores in eight Southeastern states, including eight stores in the Charlotte area. Badock’s parent company, Texas-based Conn’s, filed for Chapter 11 bankruptcy in July.
In August 2023, Mitchell Gold + Bob Williams in Alexander County closed abruptly with 533 workers losing their jobs at Taylorsville, Hiddenite and Statesville facilities. The company had operated there for 35 years.
That same month, 60-year-old Klaussner Furniture Industries in Randolph County closed abruptly with putting 884 people out of work at seven Asheboro facilities. Both companies cited failure to secure financing and filed for bankruptcy.
Two years ago, Ashley Furniture Industries closed its Statesville facility in Iredell County, resulting in 111 layoffs. The Wisconsin-based company said then it was consolidating manufacturing operations.
But there has been some growth, too.
In 2022, a North Carolina furniture maker said it would will spend $5.9 million to expand its manufacturing in the Charlotte region, creating 100 jobs. Vanguard Furniture Company Inc., based in Conover, said it would invest $5.9 million to expand its manufacturing operations by opening its eighth facility focused on upholstery and finishings in Morganton.
Production of upholstered furniture also resumed this year at the 1-million-square-foot former Mitchell Gold + Bob Williams in Taylorsville plant.
In August, Surya Inc. announced 50 MG+BW upholstered furniture pieces in more than 200 configurations are available to designers in a “pre-launch sale” before full production resumed in the fall. Surya, based in Cartersville, Georgia, purchased MG+BW for an undisclosed price in November 2023.
This story was originally published November 22, 2024 at 12:54 PM with the headline "NC furniture maker cuts over 120 jobs citing Hurricane Helene damage, insurance battle."