The news is not so good for Wadley though, where they made the furniture. Penny Pool, writing for the Randolph Leader, has the most complete story. Wadley workers are already getting their household water turned off, and ADECA has sent in their Rapid Response Team, headed by Mr. Allan Friday, to assist the workers in the transition from gainful employment to State Assistance in the form of unemployment compensation, health coverage for their children, and possible job training.
The Wadley Plant would be a real bargain despite its debts. Once in bankruptcy, the plant will be available at fire sale prices, and it is still a highly profitable operation. Reportedly, Mr. Sam Blount, Chairman of Meadowcraft, is in talks with a Texas firm that expressed some interest.
In 1994 Meadowcraft added a 660,000-square-foot manufacturing and distribution facility to its existing operation in Wadley, Alabama. The company also completed a 500,000-square-foot distribution center on Birmingham's Carson Road in early 1995 and a 160,000-square-foot addition to that center later in the year. This facility was adjacent to the company's newest expansion, a 350,000-square-foot factory near company offices off Pinson Valley Parkway.
Maintaining that "the dealer is always right," McTyeire once reportedly accepted a return shipment of wrought iron furniture made by a competitor, from a dissatisfied dealer who mistook the furniture for Meadowcraft. Rather than returning the shipment to the dealer, McTyeire saw to it that the pieces were refurbished and returned to the dealer, with an explanation, at no charge. Of course, that dealer was duly impressed with Meadowcraft as were many other dealers over the years.
Keith Olbermann ought to pick this one up for a Worst Persons segment. Wells Fargo & Co. forced Plantation Patterns parent company Meadowcraft, Inc. into bankruptcy last March. Today, they auctioned off Meadowcraft's assets, including the Plantation Patterns plant in Wadley, Alabama that employs 500 people in this town of 650. No word yet on whether they found a bidder for the Wadley plant.
Here's the real craziness: The current management wants to buy the Wadley plant -- Plantation Patterns is a viable business with customers, orders, etc. -- but they can't get credit from Wells Fargo & Co. This is the same Wells Fargo & Co. who received $25 billion in taxpayer bailout money last fall. And the same Wells Fargo & Co. whose Chairman received $23 million in compensation for 2007 and whose CEO received $12.5 million that year. Also, as Democratic candidate for State Treasurer Jeremy Sherer points out, it's the same Wells Fargo & Co. which holds deposits from the State of Alabama totalling roughly $40 million.
“The State of Alabama has approximately $40 million deposited within Wachovia/Wells Fargo. I do not believe that Wachovia/Wells Fargo’s treatment of Meadowcraft, and the families and communities associated with it, exemplifies the kind of civic virtue that our State and its taxpayers should reward to the level that we presently do”, declared Sherer.
But this same Wells Fargo would rather see the Wadley plant auctioned off -- probably closed permanently with the equipment and jobs shipped overseas -- than turn loose of some of that TARP money in a line of credit to a Main Street, American manufacturer. What the heck are they doing with that $25 billion in TARP funds, socking it away for a rainy day? News flash: If you live in or near Wadley, Alabama, today is one heck of a rainy day.
Without credit, Meadowcraft, Inc. which employs 600 people in Wadley and 800 people in Selma will go under tomorrow, for the last time. They're facing liquidation, closing the plants, probably forever. Two Alabama communities already struggling with high unemployment and poverty rates will be further devastated. Stuart Appelbaum is president of the 100,000-member Retail, Wholesale Department Store Union, UFCW that represents some Meadowcraft employees. He made these remarks at a Rally to Save Meadowcraft Jobs in Roanoke, Alabama this morning.
The other day, when I looked at the list of all the leaders who’ve endorsed this program, it occurred me that some people may be scratching their heads trying to figure out whether this is a Democratic protest, or a Republican protest, or an Independent protest. Well, I think the answer to that is “all of the above.”Because destroying the jobs of Alabama workers isn’t a matter of left and right. It’s a question of right and wrong. That’s why we’re today.
We’re here because we believe it is wrong -- morally wrong -- for Wells Fargo to turn its back on Meadowcraft and the men and women who work there. We’re here because we believe it’s wrong -- morally wrong -- for a bank that received $25 billion tax dollars last year, to take food off the tables of Alabama families this year. And we’re here because we know that it’s wrong to rob the employees and managers of Meadowcraft of the opportunity they deserve to turn their company around!
At a time when 15 million Americans are out of work -- including more than 215,000 Alabamians -- it’s up to business and labor to work together and do whatever it takes to protect good jobs and to create new ones.
As president of the RWDSU I can tell you that we are always ready to do our part to help employers compete and win.And, you know something? I’m convinced that a lot of employers are willing to roll up their sleeves and work with unions, too. But, at the end of the day, it doesn’t matter if we do our part if corporations like Wells Fargo refuse to do theirs.
That’s why our message to Wells Fargo is that it’s not too late -- there’s still time for you to choose to do the right thing. There's still time for you to save Meadowcraft.
Our message to Wells Fargo is that when your earnings are up 47 percent over a year ago there's no excuse for you not to save Meadowcraft!
Brothers and sisters, our message to Wells Fargo is that just as the American taxpayer gave you a second chance last year, it’s your responsibility to give Alabama workers a second chance this year!
Applebaum gets it exactly right. This isn't a partisan issue -- it's a moral issue that pits American workers against corporate profits. In this case, the profits of a corporation who got a $25 billion dollar bailout from the taxpayer and now won't lend that money out to a manufacturer. Meadowcraft isn't looking for a handout, they just need a line of credit.
Everyone tells us the economy is bad and credit is tight, but the economic crisis is personal for thirteen hundred people in Central Alabama. Plantation Patterns, a subsidiary of Meadowcraft, Inc. with plants in Wadley and Selma has been in bankruptcy since March 20 and may permanently close their doors on Friday. In Wadley, the company employs about 500 people making wrought iron furniture in a town with a population of less than 650. There is no other industry in town and Mayor Jim Dabbs says the loss of Meadowcraft jobs would devastate Wadley.
"Other than Meadowcraft, we have a couple of restaurants, gas stations and Southern Union Community College."
Making matters even worse, Meadowcraft owes the city of Wadley around $168,000 in unpaid utility bills. In addition to the Wadley plant, Meadowcraft also employs approximately 800 people at a plant in Selma, Alabama where they make soft goods such as cushions and umbrellas. Over 20% of people in Randolph County (where Wadley is located) live below the poverty level. For Dallas County (home to Selma) the figure is 30%.
Meadowcraft's problem isn't slow sales. Nope. The company has orders for furniture. What they lack is cash. Unfortunately, Jerry Camp, former president, and Larry Maynor, chief financial officer, were dismissed last March in the wake of "accounting irregularities," leaving the company with unpaid bills and a shortage of cash. As in, struggling to meet payroll and unable to pay creditors -- some of whom forced Meadowcraft into involuntary bankruptcy.
Meadowcraft has orders. They have equipment. They have workers. There's no question this is a viable business. The problem is they can't get credit to continue operating until the current management can purchase the business.
And who can't they get credit from? Wells Fargo/Wachovia -- who accepted $25 billion in federal Troubled Asset Relief Program (TARP) money just a few months ago. I don't know how much Meadowcraft needs, but I'll bet Wells Fargo Chairman's 2007 compensation of $22,874,952 would make a healthy dent in it.
I heard about the plight of Wadley from Democratic congressional candidate Josh Segall, who also told me there will be a Rally to Save Meadowcraft Jobs Thursday morning at 9 am in Roanoke. If anyone is in the neighborhood with a camera, please send pictures. Details of the rally are at the end of this post.
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Everyone tells us the economy is bad and credit is tight, but the economic crisis is personal for 
