With credit dried up from its bank, Norwalk Furniture has suspended operations, idling its plants and telling its 500 employees in Northern Ohio not to come to work until further notice. Norwalk Chairman Jim Gerken says the company has been going through a restructuring plan, but cannot secure funding from its bank--nor will the bank allow them to enter into relationships with other investors. Gerken says that leaves their future uncertain.
GERKEN: I think it's a reflection of the times here in Northern Ohio. Unfortunately, an employer in the town just north of us announced 65 manufacturing jobs going away as well. So it's not a great time for manufacturing in Northern Ohio.
Norwalk mayor Sue Lesch says she remains cautiously optimistic and is working with the company to try to work out a solution and save the city's second-largest employer. The furniture maker had appeared to weather the industry's downturn better than some of its competitors--and has managed to keep its manufacturing in the US--despite competition from low-cost manufacturers with plants in Asia. Chairman Gerken says he doesn't expect Norwalk to declare bankruptcy, but it's not out of the question.