The United Furniture owner, who fired thousands of workers in his sleep at the end of November, has resurfaced and claims he didn’t know how badly his business was failing.
David Belford went unheard for weeks after the announcement of the layoffs and the subsequent backlash just before midnight on November 21.
Speaking to a trade publication in mid-December, he said, “My insight into the company’s finances was limited.”
Describing himself as a “passive investor” in United Furniture, Belford said he “only recently” learned how bad things were and that he was not to blame for the meltdown.
David Belford, the owner of United Furniture, which laid off thousands of employees while they slept in late November, has resurfaced and claims he didn’t know how badly his business was failing
He said: ‘Unfortunately, the reality of UFI’s circumstances was brought to the board’s attention much too late.’
However, Belford is still UFI’s chief executive officer and has played a key role in active litigation, according to the New York Post. An HR manager guaranteed employees that they would receive W2 statements.
A lawyer for UFI employees said he reinstated those HR execs “to save face because he was being hammered”.
Philip Hearn added: “Who looks like a bigger Scrooge than this guy?”
Belford did not comment on the rumors that he flew to Paris after the announcement.
His absence left UFI’s lenders pondering what to do with the company’s assets, buildings and angry employees. Belford is the only one who can call the shots or make legal decisions, a source told the Post.
“He irresponsibly shut down his company without notifying anyone in advance,” the source said. “And he has the means to do it the right way.”
David Belford went unheard for weeks after the announcement of the layoffs and the subsequent backlash just before midnight on November 21
Describing himself as a “passive investor” in United Furniture, Belford said he “only recently” learned how bad things were and that he was not to blame for the meltdown
However, Belford is still UFI’s chief executive officer and has played a key role in active litigation, according to the New York Post. An HR manager guaranteed employees that they would receive W2 statements
has tried to contact Belford and his family several times but has received no response.
A staggering 2,700 workers — most of them living in northeastern Mississippi, others in North Carolina and California — lost their jobs at United Furniture Industries overnight in late November.
The inexplicable layoffs have sparked several lawsuits based on the Worker Adjustment and Retraining Notification (WARN) Act, which forces companies with more than 100 employees to give all laid-off employees 60 days’ notice.
The digital announcement via text and email came overnight while many slept.
United Furniture Industries emailed and texted a memo to workers late Monday night, informing them not to report for their shifts on Tuesday. The layoffs come as economists predict a recession in 2023.
The memo said the layoffs took place on “Upon direction of the Board of Directors… we regret to report that unforeseen business circumstances have forced the Company to make the difficult decision to terminate the employment of all of its employees. effective immediately, November 21,” it said in part.
The memo didn’t provide specific details about what led to the layoffs, merely describing it as a “difficult and unexpected situation.” Furniture Today, a trade publication, reported that United had fired its chief executive officer and replaced him with current CEO Todd Evans.
The memo didn’t provide specific details about what led to the layoffs, merely describing it as a “difficult and unexpected situation.” Furniture Today, a trade publication, reported that United had fired its chief executive officer and replaced him with current CEO Todd Evans (pictured).
The company’s chief financial officer and executive vice president of sales were also fired in June. Evans was the former President of Standard Furniture, an Alabama-based company. He has been in the furniture industry since 1999.
In a second email, workers were informed that their “dismissal from the company is expected to be permanent and all benefits will cease immediately without the provision of COBRA,” referring to federal law that allows people who lose their jobs to die opportunity to receive their employer-sponsored health insurance coverage.
Some employees were sound asleep when the emails reached their inboxes. Others never saw the emails before going to work.
Company drivers who were out were instructed to return immediately to a United Furniture location to drop off their trucks. Most were told they would be paid by the end of the week.
The Daily Press reports that a United Furniture Industries driver has been arrested in Monroe County, Mississippi, for allegedly attempting to remove furniture from his truck.
Employees claim that despite a management reshuffle over the summer, there was no indication the company was struggling financially before the layoffs.
United Furniture continued to hire workers until November 21 — when immediate layoffs began, with some workers even expecting to work that day, according to attorney Jack Raisner, who represents California workers.
In addition, her health insurance was canceled immediately, leaving “many people” with growing “worries.” Some employees had scheduled procedures that can’t go ahead because they can’t pay the bill without insurance, Mississippi District Attorney William “Jack” Simpson told the Post.
Philip Hearn (left) and William “Jack” Simpson are representing various Mississippi employees in two different court cases. Hearn said he heard the rumors that Belford had flown to Paris and said the former boss has not been in contact with employees. Simpson also said Belford violated the WARN Act, which requires a 60-day notice period for employees
The memo said the layoffs took place on “Upon direction of the Board of Directors… we regret to report that unforeseen business circumstances have forced the Company to make the difficult decision to terminate the employment of all of its employees. effective immediately, November 21,” it said in part
Simpson said employees were notified of the layoff before receiving a WARN notice. The WARN Act entitles employees to either 60 days notice or 60 days severance pay, neither of which is provided.
“If we are appointed group counsel, we look forward to vigorously investigating United Furniture’s actions and seeking as much compensation as the terminated employees are legally entitled to,” Simpson said previously.
A former recruiter, Bill Burke, told the Post he’s still taking calls from desperate employees to get new health insurance, even though his “future is just as uncertain as everyone else’s.”
His work cellphone, he said, has yet to be disconnected. However, Belford’s personal cell phone is temporarily out of service, discovered.
Despite the company’s apparent financial woes, Belford has reportedly continued to donate millions to charities, including a $10 million gift to Ohio State University’s Wexner Medical Center for spinal cord research.
The complete ignition reports received by United Furniture Workers
This first message was sent on Monday evening:
“We are asking all employees not to report to their places of work tomorrow, November 22, 2022.
Whether or not you have completed your shipment, promptly return the equipment, inventory, and shipping documents for shipments that have been completed to one of the following locations: Winston-Salem, NC, Verona, MS, or Victorville , CA
For clarification, do not make additional deliveries. More information will be provided tomorrow morning. Please be patient and we will communicate proactively as more information becomes available.’
A second message was sent to workers on Tuesday morning:
“Following direction of the Board of Directors of United Furniture Industries, Inc. and each of its subsidiaries (the ‘Company’), we regret to report that unforeseen business circumstances have forced the Company to make the difficult decision to terminate the employment of all of its employees effective immediately on November 21, 2022, excluding road drivers engaged in delivery traffic.
It is expected that your dismissal from the Company will be permanent and all benefits will cease immediately without the provision of COBRA.
Road drivers who are out on the delivery get paid for the rest of the week. Whether or not you have completed your shipment, please promptly return the equipment, inventory, and delivery documents for shipments that have been completed to one of the following locations: Winston-Salem, NC, Verona, MS, or Victorville, CA
For clarification, do not make additional deliveries. We regret that this difficult and unexpected situation has made this necessary. More information will be provided shortly. Thank you for your service and commitment.’