A POPULAR furniture retailer has gone into liquidation – just weeks after filing for bankruptcy.
Mitchell Gold & Bob Williams was a staple of the American retail scene since 1989 before closing dozens of its stores.
The company filed for bankruptcy protection in September but is now liquidating, as reported by Sourcing Journal.
Shoppers have been dealt a blow as there is a chance that orders will not be fulfilled.
Customers might not even receive a refund even if items are not delivered.
One shopper, Monika Anderson, said her order came to more than $10,000, per legal papers seen by Sourcing Journal.
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Meanwhile, Tim and Betsy Triplett could face losing more than $5,000.
Mitchell Gold stopped trading after interim CEO Chris Moye admitted the company had financing problems.
These difficulties meant they were unable to pay their creditors.
Moye said the furniture industry had been hit by “significant challenges” because of the economic climate.
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Hundreds of workers were laid off as the company stopped trading.
The company’s 25 furniture stores in the US and Canada closed their doors.
Staffers at the company’s Taylorsville, North Carolina, plant were informed that the retailer had closed via a notice on the gate, per The Taylorsville Times.
The notice said: “Mitchell Gold & Bob Williams has recently and unexplained learned that we are unable to continue business operations.
The abrupt shutdown left former workers stunned.
Darius Spratt, who had worked for the company for seven years, said: “It was just out of nowhere,” per The Charlotte Observer.
Mitchell Gold & Bob Williams stopped trading – even though its owners The Stephens Group had pumped $20million into the business.
Mitchell Gold, who co-founded the chain alongside Bob Williams, told Furniture Today that he was “furious and heartbroken” after the company went out of business.
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He said: “As a company, we had a strong moral compass, and we always treated people right.”
It is possible that Mitchell Gold & Bob Williams could trade as an online business in the future if its intellectual property is sold.
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