A massive California retailer has now filed an unexpected bankruptcy as debt has consumed the company.
Noble House manufactured and distributed indoor and outdoor furniture for several brands including Christopher Knight Home, LePouf, and OkiOki.
Its customers include big name companies such as Walmart, Costco, The Home Depot, Amazon, Wayfair, and Target.
“During the Covid-19 pandemic, Noble House experienced a sharp increase in sales.
However, once restrictions loosened and people were leaving their homes more frequently, Noble House’s sales dropped off,” reports The-Sun.
Wayfair is facing turmoil in the industry as well as “it’s harder for Wayfair to raise money to cover its losses,” says Rapid Ratings Executive Chairman James Gellert.
Noble House’s bankruptcy petition allows the company to continue operating while it tries to sell itself.
When the company filed for Chapter 11, it owed suppliers and warehousers in its supply chain some $10 million from the period leading up to its bankruptcy,
GigaCloud Technology Inc. has agreed to buy Noble House’s assets for $85million, according to Bloomberg.
Noble House’s assets are listed for $100 million in the bankruptcy petition.
GigaCloud Technology will add $4.1million for equipment and some debts, court papers revealed.
However, Noble House is also seeking other, higher offers.
The closing date for the deal between the two companies is set for October 31, according to court papers.
Since filing, Noble House asked for and received court permission to make emergency payments to keep its suppliers in good stead and prevent warehousers from seizing inventory.
Without the ability to pay claims to vendors as they arise, Noble House would face “significant disruption to operations at this critical time,” it said in the filing.
Among its wholesale customers are off-price giants Ross Stores and TJX Cos.
For Noble House, rising lead times and inventory costs contributed to its financial decline.
Also Read: Another Popular Retailer Now Declares An Unexpected Bankruptcy
Other Economy News Today
Massachusetts now becomes the next state to experience massive layoffs according to the latest MassHire Department of Career Services data.
“Layoffs continue to hit businesses in Massachusetts this year.
Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site,” reports Ash Jurberg.
California remains the #1 state with the most layoffs in the country.
In second place is Colorado, with approximately 26,816 layoffs and 81 WARN notices, followed by Illinois, Washington, New York, Texas, New Jersey, Florida, and Michigan.
Upcoming layoffs in Massachusetts has grown drastically as more than 5,500 jobs are expected to shutter by the end of the year.
Below is a list of upcoming layoffs scheduled to take place in Massachusetts by year’s end.
- SunSetter Products. 54 jobs cuts in Malden
- Starry. 57 jobs cuts in Boston
- Wayfair. 932 jobs cuts in Boston
- Resilience US. 213 jobs cuts in Allston
- Jounce Therapeutics. 77 jobs cuts in Cambridge
- MassBiologics. 26 jobs cuts in Mattapan
- Sunsetter Products. 54 jobs cuts in Malden
- Pear Therapeutics. 78 jobs cuts in Boston
- Takeda Development Centers America. 185 jobs cuts in Cambridge and Lexington
- Path AI. 51 jobs cuts in Boston
- Quad/Graphics. 58 jobs cuts in Leominster
- Community Healthlink. Jobs cut in Worcester
- Thayer Detoxification. 39 jobs cuts in Worcester
- Thayer PASSages. 21 jobs cuts in Worcester
- Transitional Support Systems. 18 jobs cuts in Worcester
- Sunovian Pharmaceuticals. 223 jobs cuts in Marlborough
- Makita USA. 4 jobs cuts in Norwood
- Takeda – Shire Human Genetic Therapies. 42 jobs cuts in Lexington
- The Rockport Company. 148 jobs cuts in Newton
- Greenlight Biosciences. 96 jobs cuts in Lexington
- Transdev Services. 137 jobs cuts in Taunton, Plymouth
- Owens & Minor. 61 jobs cuts in Franklin
- Blue Harvest Fisheries. 57 jobs cuts in New Bedford
View the rest of the list here.
Also Read: A US Bank is Now Denying Customers Access to Money
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