Wadley is in Mike Rogers' (R, AL-03) congressional district and Rogers has written a letter to Treasury Secretary Geithner, pointing out the obvious -- isn't that TARP money supposed to trickle down to main street businesses who need credit? I agree the Federal government cannot mandate that a bank, even one that has received TARP money, extend financing to any specific company…… During these tough economic times, it is essential to give American businesses every opportunity to succeed. I urgently request that you provide your personal attention and consideration to the requests of Meadowcraft, details of which are enclosed with this letter. Your attention to their economic crisis could help save over 1300 good paying jobs in rural Alabama.
Selma lies in Rep. Artur Davis' (D, AL-07) district and he also wrote a letter to Secretary Geithner on June 12, reminding him that "Numerous small and midsized manufacturing companies are on the verge of failure because they cannot sustain their sales in the midst of a deep recession without credit." Then Davis' letter became more pointed: The owners of Meadowcraft believe that their lender has dealt with them in a wrongful manner, and that the bank's refusal to finance is a deliberate strategy to force liquidation. That claim is a serious one, if there is a factual basis for it, and the Treasury Department should use its oversight authority to assess whether an entity that has received substantial government relief is acting in such an unlawful manner. To the extent you have the legal authority to investigate such a claim, I forward Meadowcraft's correspondence to my office to you. While I applaud the concrete steps you and the President have taken to reverse failed policies that nearly wrecked our economy, I hope that Meadowcraft will serve as a reminder that more action is needed to save good manufacturing jobs from devastation.
Deliberately withholding credit to force Meadowcraft into liquidation -- and that's where Meadowcraft will be come Friday -- is an extremely serious charge. It's particularly despicable from an institution that is alive today only because of taxpayer bailout money. There is virtually no time left to save Meadowcraft and its 1300 jobs. For employees, the nightmare began in mid-March. The mayor said he was told company officials allegedly told employees to sign up for unemployment compensation and laid off all the security guards, and brought in a security firm to ensure nothing happened to its assets.
Wadley Police Chief Tim Terry verified the company asked for an officer to be at the location and visible on Friday morning when the checks were scheduled to be handed out.
Shortly afterwards, there were rosy predictions for Meadowcraft's future: “The banks have really been squeezing us for about four weeks now,” CEO and Chairman Sam Blount said. Despite that, Blount said a resolution was reached March 26 with the banking groups. “I've been in this business for 29 years – almost 30 years – and the company has never been in a stronger position,” Blount said. “We're ahead of last year; I'm shocked at how well we're doing this year.”
But that didn't pan out. The situation was still uncertain in late June: "I had a conversation with Larry York and he said on Tuesday night Meadowcraft met with creditors and was given more time," Dabbs said. York is vice president of administration for Meadowcraft, the parent company of Plantation Patterns.
However, the situation seems to be changing quickly with news the plant may close by Friday. Plantation Patterns employees are taking matters into their own hands to save their jobs, gathering names on petitions about keeping the facility open. They plan to fax the signed petitions to U.S. representatives and senators to try save the company and their jobs.
A rally in front of the Wachovia branch in Roanoke was scheduled for late June, but employees were told it was cancelled. "We were ready and willing to go but we were instructed to hold up to further notice. We were not given any details," [Brenda Thompson] said.
Checks for vacation pay were less than expected, due to the bankruptcy: According to Wadley Mayor Jim Dabbs, on Tuesday morning there were five cars at the Wadley manufacturing facility. He was told the company gave out vacation checks last week that were not equal to the amount of vacation time built up by employees.
Since late June, negotiations still have not produced an agreement to allow Meadowcraft to stay open while the credit crisis is resolved. It takes money to operate, and money is something the management just can't lay their hands on right now. The last hope for Meadowcraft employees and their communities is a rally scheduled for 9 am Thursday morning. Bold mine. With only hours remaining to prevent the loss of 1,300 Alabama jobs, an alliance of labor and community leaders will rally in Roanoke Thursday in a desperate bid to stop Wachovia/Wells Fargo's planned Friday liquidation of Meadowcraft, Inc. The Birmingham-based Meadowcraft, which manufactures outdoor furniture at factories in Selma and Wadley, has been in Chapter 11 bankruptcy since March. Both the company's operators and the workers' union, the Retail, Wholesale and Department Store Union (RWDSU, UFCW), say that, with added time, the firm's current management can arrange financing to purchase Meadowcraft. However, Wachovia / Wells-Fargo has refused to continue to provide the funding necessary for Meadowcraft to operate until its sale is completed. The closing would cause the immediate loss of 1,300 Meadowcraft jobs and others at area retailers and suppliers. CONTACT: John Whitaker, RWDSU, (205) 901-9532 WHAT: Rally to Save Meadowcraft Jobs WHEN: 9:00 AM, Thursday, July 23 WHERE: Participants will gather outside the Piggly Wiggly (1115 Main St.) and march to the Wachovia bank (607 Main St) where they will rally. WHO: Speakers include: -- RWDSU President Stuart Appelbaum
-- Brenda Thompson, Meadowcraft worker and RWDSU steward
-- Edith Buchanon, Meadowcraft worker and RWDSU chief steward
-- Cortina Terry, Randolph County Democratic Party
-- Hon. Lathonia Wright, Chairperson, Randolph County Commission
-- Hon. Kim Benefield State Senator, District 13
-- Hon. Richard Laird, State Representative District 37
-- Gerald Dial, Executive Director, Alabama Rural Action Commission
-- Representative of the Hon. Mike Rogers, U.S. Representative, Third
Congressional District
-- Representative from the Randolph County Industrial Development Council
-- Doyle Allen, Terry Lovvorn, June Waldrep, and Doug Sheppard, Randolph
Co. Commissioners
-- Hon. Mike Fisher, Mayor of Roanoke
-- County Commissioners from Chambers, Tallapoosa, Cleburne, Clay, and
Coosa Counties.
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Everyone tells us the economy is bad and credit is tight, but the economic crisis is personal for 
