ASHEBORO, N.C. (WGHP) —A Canadian company is looking to buy and reopen a subsidiary company of Klaussner Home Furnishings.
It’s been two months since Klaussner Home Furnishings shut down, leaving nearly 900 employees without a job, including those at Prestige Fabricators.
Local leaders believe if the sale goes through to VPC Group, it could potentially bring back much-needed jobs lost when Klaussner closed. Prestige Fabricators closed its doors on Aug. 7, when its parent company Klaussner Home Furnishings announced it was shutting down.
After closing, the company went into receivership. A North Carolina Business Court judge has been overseeing the case for the sale of Prestige Fabricators, which was brought forth via a complaint filed in the court by Bank of America Corporation in connection to Klaussner’s loans.
“They were started here and been very successful here, and I think it’s probably just bad news that they get caught up in these financial shortcomings of the parent company when Klaussner was closed,” Mayor of Asheboro David Smith said.
On Sept. 15, VPC agreed to purchase prestige fabricators for $7 million.
Smith said he does not know the specifics of the case but believes the potential sale is a sign of hope for many employees impacted by Klaussner’s shutdown.
“We’re going to keep our fingers crossed and hope that this does come to fruition, that the Canadian company that is pursuing Prestige is successful, and we’ll just wait like everybody else,” Smith said. “We haven’t been notified of any promising developments in that other than they are working and trying to make this happen.”
Randolph Economic Development Corporation President Kevin Franklin said that based on court filings he has seen, this is a “potentially promising opportunity” and “a great fit for Asheboro and a way to put some folks back to work.”
One of the conditions for the sale of Prestige Fabricators to VPC Group is its ability to enter a new lease agreement for the two facility sites in Asheboro located on Dumont Street and Highway 49.
“They’re a good asset for anyone … in that type of manufacturing. So I feel like someone will come along and put an operation in there,” Smith said.
We reached out to VPC Group about the company’s interest in purchasing the Klaussner subsidiary and how many positions it could potentially offer former employees but have not heard back yet.