Bankruptcy filing holds off Moosehead Furniture auction

Bankruptcy filing holds off Moosehead Furniture auction


By Diana Bowley
BDN Staff
BANGOR DAILY NEWS PHOTO BY KEVIN BENNETT
Auctioneer Steven Keenan (center) talks with hopeful bidders at a Moosehead Furniture warehouse in Monson on Thursday after the planned auction was canceled due to Moosehead Furniture filing for bankruptcy. Buy Photo

MONSON, Maine — A glimmer of hope was given to this town Thursday when the owners of Moosehead Furniture Co. filed Chapter 11 bankruptcy proceedings just minutes before an auction was to be held to liquidate the assets.

But that glimmer came at the expense of more than 200 people from across the country who made the trek to Monson hoping to take home a piece of local history or to bag a bargain at the auction. The parking lot was loaded with pickup trucks, some of which towed long trailers.

Chuck Lapinski of Tennessee was not a happy man. “I came up last week from Tennessee to look at the equipment, and then I drove to New York and flew into Bangor today to bid on the whole sawmill — the carriage mill,” Lapinski of LPS Equipment of Tennessee said Thursday. “I bet I’ve spent $5,000 on this,” he grumbled after the announcement was made. He said his company purchases and resells sawmill equipment, and he already had commitments to buy the equipment from the carriage mill.

The announcement dashed his plans for a piece of the action, for now.

Steve Keenan of Keenan Auction Co. of South Portland, who received the Chapter 11 announcement through a telephone call, said it is now up to the owners to file a reorganization plan. Should that plan fail, he told the auction-goers, then another auction likely will be held at a future date to liquidate the assets.

Owners Joshua Tardy, a lawyer and the Maine House minority leader, and Dana Connors, president of the Maine State Chamber of Commerce and former Department of Transportation commissioner, along with Rhode Island financier Ed Skovron, purchased the company in September 2007 when the former owners intended to close the business for good.

John Wentworth, president of the former Moosehead Manufacturing Co., which had been in operation under the Wentworth-Durham families for 60 years, said earlier the decision to close the business was in part because of competition from low-priced furniture imported from foreign countries such as China, Mexico and Brazil. About 125 employees lost their jobs when the mill closed under his family’s operation.

Hoping to revive the well-known furniture business under a new name of Moosehead Furniture, Tardy and Connors secured enough funds for its purchase, but months later found they did not have the capital to weather the poor economy. They too shut the doors, sending about 30 employees back on the unemployment ranks.

When that was done, Machias Savings Bank, the primary lender of the corporation, placed the property and equipment up for auction.

Domestic furniture manufacturers have had a really tough go of it, in particular in the past 24 months, Tardy said earlier this month. “Not that they haven’t had a tough go in the past decade, but it’s been an extraordinary downturn in domestic furniture consumption [in the past 24 months],” he said.

Tardy, who did not attend the auction and did not return telephone calls Thursday, said earlier this month that he and his partners had hoped to find an investor to stave off the auction, and apparently they were successful.

For many locals, the announcement meant the company bought a little more time.

Had the equipment been sold, no one would ever come back and reopen a mill in Monson despite the skilled labor force, according to Wentworth.

Wentworth, who had arrived early for the auction like others who milled about the property, said he felt drawn to what he thought would be the final chapter of the town’s historical icon. The town was known worldwide for the Moosehead Furniture it produced and the skilled workers who hand-crafted the items, he noted.

The mill has such a history with the town that Wentworth said he could almost see the imaginary shadows of long departed workers standing in the corners watching the proceedings.

Susan Deloia of Monson, who had worked 21 years in human resources at the plant, stood around with other former workers, including Tammy Kelley and Matt Gerrish, waiting for the auction to start. “It feels like crap,” Gerrish said of the intended sale. Gerrish, Deloia and Kelley said they are still unemployed.

Losing Moosehead Manufacturing Co. was like losing a relative, Collin Bickford, who worked 40 years in shipping, said Thursday. He said most of his family had worked at the business, including his late father, Ivory Bickford, who began the second year the business was open.

Monson Town Manager Julie Anderson, who did not attend the auction, said the town is in a wait-and-see mode with the new development. The company has been a big contributor to the town over the years, and she said she hoped to see that relationship continue somehow.

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Comments
12 comments on this item

HATS OFF TO TARDY AND CONNORS FOR NOT GIVING IN AND TRYING TO SAVE THIS MAINE INDUSTRY, IF OUR PEOPLE IN WASHINGTON WERE WORTH THEIR SALT THIS WOULD NEVER HAVE GONE THIS FAR, WE HAD TO GIVE BILLIONS TO BAIL OUT THE BANKS BUT LOOK AT HOW THE BANKS BAIL US OUT. PUT US UP FOR AUCTION AND GIVE US TO THE SCAVANGERS.

I had some of their furniture from the 70's and nobody could touch the quality. Hope they revive it and get more jobs for the area.

Gotta wonder how much FAME money found its way into the pockets of the politically connected before the doors closed.

theres is no better product then moosehead, I am glad they did this but wish they had done it sooner.I can understand why people that spent alot to go to this are upset. I hope they can get there s-it together and get up and running agian,you get what you pay for and moosehead is the best

Hate to break this to you Bud, but Machias Savings Bank did not receive bailout money. It's safe to say most local banks did not receive a penny of the bailout money. Even more reason to bank locally!

More Maine jobs bye bye. Besides how many times can a company go bankrupt? Just can't compete against Chinese slave, prison and child labor.

We need import duties. We had them in the days we were producers and not just consumers. Ah well, this is what happens when international companies own every politician in the country. The companies set up shop in China and close up shop in America; democracy is a pathetic system that has eaten the souls of its people to pour profit into its corporations. Long live the corporations!

SammieJ, just what do you think FAME guarantees are?

How sad. seems to be the case all over New England. In New Hampshire and Vermont it's Ethan Allen funiture. I guess we are all stuck buying "quality" funiture from such great places like Wal Mart and Target. the good stuff that lasts all of a year or two. when was the last time anybody bought funiture that wasn't made out of press board? Sad Sad Sad.

I would very much like to have Tardy or Connors contact me because there is a way to bring Moosehead back. What Moosehead management like the rest of the US furniture industry management simply did not understand is that their product line and business model were both way outdated. Regardless of what the quality was, the design of the product was good 40 years ago. It was irrelevant to today's buying public. The management consistently chose to compete directly with imports because of the product they were making. If you are going to be production driven like Moosehead was, then you will be price driven. And when you are price driven in a global market, there is no bottom to price. They could have chosen to create new markets with new product approaches in order to be product driven. Competing with unique product rather than generic old fashioned design would have given them staying power. When a product is new and unique, then people are willing to spend more for it. Remember the long lines to buy IPhones when they first came out? One cannot blame cheap Asian labor alone for the loss of jobs. Labor is only a part of the cost of building a product. If the product had been more uniquely relevant and the factory consistently innovative, then Moosehead would still be operating today. But there is something about the manufacturing mentality that believes production pre-empts design over and over again.

In addition their method of selling does not work anymore. This company could be re-invented to start producing new product by the end of this year at the latest. It could bring back all the jobs that were lost. But it would have to be done with new product directions and a new selling business model. Both of these are very doable. If anyone is interested in learning how, I would love to speak with them to help rebirth a Maine heritage business.

Andy Grove, co-founder of Intel, liked to say that companies come to “strategic inflection points,” where the fundamentals of a business change and they either make the hard decision to invest in a down cycle and take a more promising trajectory or do nothing and wither.

Please email me if you want to bring Moosehead back: robtwmark@verizon.net

Well there Mr Innovation - you clearly have not looked at the design since Tardy and Connors took the company over a few years ago. They were making some beautiful cherry pieces that were priced so that everyman could certainly afford to buy them. They did continue the styles that made the company kfamous, but had added many nice contemporary pieces. But getting people to even look at furniture or local art is darn near impossible. For some odd reason buyers have made up their collective minds that if it doesn't come from a big box store it can't be any good. This despite the intrinsic knowledge that what comes from a big box store is almost univerally crap and will break in a year of less. The american buying mind is a mystery to me.

If only people would go back to doing business with their neighbors perhaps that trend would die off.

Problem:Free Trade =Poverty For Majority Of Americans [][][][][][][] Solution: Abolish Free Trade=America Goes Back To Work=Prospering Americans

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