Furniture maker Mitchell Gold + Bob Williams has filed for bankruptcy.
It comes two weeks after its factories in western North Carolina abruptly closed, leaving hundreds of workers without jobs.
The bankruptcy petition, filed in federal court in Delaware on Wednesday, says the company ceased operations after it failed to secure promised funding from PNC Bank.
"...the Company continued to operate its business, including the retail locations, distribution center and outlets through at least August 25, 2023, and the factory through the morning of August 25, 2023, so that local management could secure the assets of the Company, which directly benefited creditors," the petition read.
Mitchell Gold + Bob Williams continued to operate in the belief that PNC would continue to provide enough funding for wages and other compensation, "but were then rejected as of Sept. 1, 2023."
A restructuring officer will oversee efforts to pay creditors and wind down operations. The petition says Mitchell Gold + Bob Williams has between 200-999 creditors with liabilities between $10 million and $50 million. Its parent company, Arkansas-based Stephens Group, has also filed for bankruptcy.
State and local officials in Alexander County, where Mitchell Gold + Bob Williams was the largest employer, are trying to help the more than 500 workers who have lost their jobs.
A job fair is scheduled for Sept. 12, according to The Taylorsville Times.
In addition to factories in North Carolina, 25 retail stores in the U.S. and Canada have closed, leaving some customers unsure what will happen to their furniture orders.
