The trustee for bankrupt United Furniture Industries Inc. is opposing WARN Act lawsuits that seek 60 days of pay and benefits for 530 Triad employees and about 2,700 companywide, the Winston-Salem (N.C.) Journal reported. United made promotional- to mid-priced upholstered furniture in the U.S. under its brand and the Lane Home Furnishings brand. The manufacturer also imported wooden bedroom and dining furniture. United shut down unexpectedly on Nov. 22, immediately ending employment and health-insurance benefits. United had facilities in Winston-Salem, Lexington, Archdale and Trinity. It was placed into chapter 11 bankruptcy protection on Jan. 18, allowing the company the opportunity to sell its assets. United has not filed a WARN notice in California, Mississippi or North Carolina — the three states where it had operations. Chapter 11 trustee Derek Henderson submitted his motion in opposition to the lawsuits on Wednesday in the federal Northern District of Mississippi. Henderson summed up his opposition by saying that although United did not provide a WARN notice in November, he “denies that United violated the act and/or any state law because the shutdown and layoffs were due to unforeseen business circumstances, as well as the inability to obtain financing.” Wells Fargo & Co., the manufacturer’s largest creditor, listed in a Dec. 30 legal filing that United was a $600 million annual revenue business before the abrupt shutdown. The former employees are requesting class-action status in the six filed WARN lawsuits, some of which have been combined.
