ASHEBORO, N.C. — A Canadian company, VPC Group, is looking to purchase a branch of Klaussner Home Furnishings.
If you remember, Klaussner Furniture Industries Inc., a furniture merchandiser based in Asheboro, unexpectedly and permanently closed its doors on Aug. 7, letting go of hundreds of employees.
Randolph County Commissioner Chair Darrell Frye said if a new company were to purchase a subsidiary of Klaussner, it would positively impact the county.
Frye said the company would look to rehire/hire some of the employees who lost their jobs in the Klaussner closing in August.
This is confirmed in court documents that said VPC Group, or VPC Foam intends to operate the Prestige Business and will hire a substantial number of former employees to work in the business.
According to their website, VPC Group is a leader in foam and fiber manufacturing in North America, based in Toronto, Ontario.
In court documents WFMY News 2 obtained from NC Business Court, the company intends to enter into a new lease with the Dumont Landlord concerning the Prestige manufacturing plant located at 2206 Dumont St., Asheboro, North Carolina.
Court documents said, that on Sept. 29, the Court held a hearing on the Receiver’s Motion to Sell Certain Assets of Prestige Fabricators, Inc. to VPC Group USA, Inc. Following that hearing, the Court entered its Order on Motion to Sell Certain Assets of Prestige Fabricators, Inc. to VPC Group USA, Inc. on Oct. 2.
As part of the Sale, VPC Foam seeks to utilize this facility.
To close on the sale, the Receiver seeks to amend the Highway 49 Lease Agreement to abandon the Highway 49 Property so that VPC Foam can enter into a new lease with the Highway 49 Landlord for use of that facility, court documents said.
Documents reveal that VPC Foam has paid a substantial deposit, including a non-refundable portion, and has demonstrated the ability to close the sale without financial contingencies.
VPC Group offered to purchase all property owned by Prestige used in connection with Prestige’s operations free and clear of all liens, claims, and encumbrances for $7,000,000.00 at the time of closing. Documents said the transaction is expressly conditioned on the court's approval.
According to Klaussner, more than 800 employees at seven different locations in Asheboro and Candor were impacted by the closures in August. Klaussner submitted a WARN (Worker Adjustment and Retraining Notification) notice to the North Carolina Department of Commerce on Monday.
They said they are working to provide employees with information and resources for the "next steps".
Klaussner cited the unexpected closure after running out of funds.
"This outcome was not reasonably foreseeable, but due to these unexpected circumstances, Klaussner can no longer sustain its operations."
The company said it's providing as much notice as possible and is closing all facilities entirely.
Klaussner had been in business since 1963.
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