Meadowcraft auction set for Monday; Wadley workers, community rally for company's future
by Vaughn Stewart III
Staff Writer
Jul 24, 2009 | 2229 views | 1

|
14 
|
|

Workers from Wadley's Plantation Patterns and local supporters march Thursday to the nearest Wachovia bank branch in Roanoke. Plantation Patterns is owned by Meadowcraft Inc. Photo: Vaughn Stewart III/The Anniston Star
slideshow
ROANOKE — Hundreds of workers at Wadley's Plantation Patterns today are unsure whether they will have a job after Monday. A liquidation auction of the plant's parent company, Birmingham-based Meadowcraft Inc., is scheduled for that day.
Attorneys for the bankrupt firm filed a notice Thursday in federal court in Delaware saying the auction, originally set for today, had been rescheduled.
Workers, community leaders and concerned citizens took action on Thursday morning in nearby Roanoke, hoping that a rally could delay the auction until Meadowcraft's current management had enough money to buy the company. The auction could leave 1,300 workers in Wadley and Selma looking for employment.
Wells Fargo & Co., which now owns Wachovia, forced Meadowcraft into bankruptcy in March. Wells Fargo, Meadowcraft's primary lender, claimed that the company owes nearly $64 million. On July 6, a Delaware bankruptcy judge ordered the liquidation of Meadowcraft's assets.
Meadowcraft is the country's largest manufacturer of wrought-iron furniture.
Dozens of protesters marched to Roanoke's Wachovia branch, hoping to convince the bank and the bankruptcy judge to consider their plight. Several police officers stood in front of Wachovia and the building's front door was locked.
Workers expressed fear that if the auction goes forward, a buyer would close the plant and ship its equipment and their jobs overseas.
Songs and chants such as "We Shall Overcome" and "One more chance" reverberated throughout the rally. Meadowcraft workers and local officials delivered speeches to the audience.
"We're united as a family to appeal to Wachovia and the bankruptcy judge. [Wachovia] just got $25 billion in taxpayer bailout money when they needed help, so they have no right to be selfish or stingy. No one here is asking for a bailout, just an opportunity to work," said Lathonia Wright, chairman of the Randolph County Commission.
Jamie Grady, a representative of Wells Fargo, reached later by The Star, expressed the company's interest in "protecting the privacy" of its customers.
"We empathize with the employees and communities affected by decisions made by Meadowcraft. We continue to fund Meadowcraft as it explores its options in the bankruptcy process," said Grady in a statement.
Meadowcraft reported in June that former executives overstated its assets in order to obtain loans, according to a court filing.
Filings say that the company's net income was exaggerated by $12.4 million through "fictitious invoices, re-aging invoices/aged credits, fictitious quantities in finished goods."
Efforts to reach Sam Blount, CEO and chairman of Meadowcraft, were unsuccessful Thursday afternoon.
Despite the looming shutdown, Plantation Patterns employees like Brenda Thompson were trying to remain optimistic.
"I feel fantastic about the great response we had today. The number of people that turned out exceeded my expectations and now I just have to put my faith in God," Thompson said.
The rally was organized by the Retail, Wholesale and Department Store Union. The union's president, Stuart Appelbaum, said, "I hope that Wachovia gets our strong, powerful message. Don't destroy this community, don't destroy these families. Do what's morally right."
Wadley Mayor Jim Dabbs said Wednesday that the potential closing of the plant would not only be devastating to his town, but the surrounding counties as well.
A representative for U.S. Rep. Mike Rogers, R-Saks, told the crowd before the march that Rogers fully supports their efforts. Rogers and U.S. Rep. Artur Davis, D-Birmingham, sent letters to Treasury Secretary Tim Geithner in June, asking the Treasury Department to examine the concerns of the local employees of Meadowcraft.
Joshua Segall, a Democrat who is seeking a rematch in 2010 after Rogers defeated him last year, also attended the rally.
Gerald Dial, Executive Director of the Alabama Rural Action Commission, said that Gov. Bob Riley's principal concern is keeping good-paying jobs in Alabama.