Furniture Today
Bobby Dalheim //Senior Editor of Case Goods and Global Sourcing//November 20, 2024
MORGANTON, N.C. — High-end furniture manufacturer EJ Victor will permanently lay off 121 workers at its Morganton plant this Friday, Nov. 22.
In a WARN notice filed with the state of North Carolina on Nov. 15, the company wrote: “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.”
The company said that it is not part of a union and that bumping rights for workers do not exist. All affected employees have been notified, it said. No other specifics were given.
EJ Victor filed a lawsuit against its insurance provider Fireman’s Fund Insurance Co. on Nov. 7, alleging the provider wrongfully denied EJ Victor coverage after Helene destroyed much of the company’s Morganton plant. EJ Victor says the interior of its property was “inundated by water carried into the building, submerging much of the ground floor and severely damaging the walls, furniture, furnishings and inventory, among other things.”
“Although the policy plainly requires FFIC to pay EJV for its losses, FFIC has refused to do so,” the company said in the suit. “EJV has paid all premiums due to FFIC and has complied with all applicable duties under the policy. EJV is entitled to the full benefits and protections afforded by the policy.”
The company said in the suit that the lack of coverage has created “crippling losses and significant problems.”
“In addition to loss of property, FFIC’s delay and denial has left EJV in a position in which it is unable to recommence business operations without a commitment of insurance funds to rebuild or relocate, which should never happen to a business that purchased insurance to cover exactly these circumstances.”
EJ Victor has not yet responded to Furniture Today’s request for comment.