Wood Flooring International
(WFI) founder and ceo Bill Jopling told NFT
that he had no option but to initiate the “orderly liquidation” of his
nine-year-old company after the abrupt closing of the multi-state distributor
Hoboken Floors.
Jopling said debt left unpaid by
Hoboken, including “a bunch of bounced checks and a bunch of containers
stranded in port,” left WFI unable to meet its financial obligations. He noted
the 25 workers were laid off and that a skeleton crew of “about 10” people
remains to tie-up loose ends in WFI’s headquarters in Burlington, N.J.
“I’d call it a domino effect,” said
Jopling, whose company specialized in exotic species including Brazilian
cherry, Caribbean rosewood and Australian cypress. “We never expected that
Hoboken would just shut down.
“When I found out about it I wanted to
do the right thing.” He said he called his creditors and voluntarily began liquidating
assets. “We had a pretty good company but a weak ledger sheet,” he said.
The closing of WFI is one of a number
of repercussions arising from Hoboken’s Chapter 7 bankruptcy filing in early
November after 77 years in the flooring business. Hoboken is believed to have
1,000 to 5,000 creditors. Its bankruptcy filing came on the heels of claims
against Hoboken by suppliers.
The closing of the Wayne, N.J.-based
distributor also prompted a flurry of activity among suppliers seeking new
distributors. Many of Hoboken’s customers were also left scrambling to find
products needed to complete scheduled jobs.
While the overall slump in the
flooring business is widely seen as the main reason for Hoboken’s demise,
another factor frequently mentioned is the company’s ownership change two years
ago. The new owner, the private equity firm Code Hennessey and Simmons, is said to have put more pressure on
the bottom line despite the industry’s downturn. It also sought to immediately
expand. Shortly after the purchase, Hoboken merged with the Elkridge, Md.-based
flooring distributor Superior Products. Prior to the bankruptcy filing, Hoboken
Floors operated 26 locations around the country.
Liquidation firm LiquiTec Industries is overseeing the dismantling of the now defunct Hoboken Floors and the Superior Products division. The company estimates that more than $50 million in flooring inventory will be liquidated, including tile, hardwood, carpet, finishes, accessories and tools.
WFI’s Jopling stressed that he harbors
no ill will for Hoboken’s long-time management team Ira and Joel Lefkowitz.
The two brothers had stayed with the company after the acquisition two years
ago, but departed for other opportunities earlier this year.
Jopling noted that his decision to forego bankruptcy
protection and deal directly with creditors may be a plus for any of his future
efforts in the industry. “It isn’t like our suppliers and customers hate us,”
he said. Asked about his future plans, the 55-year-old executive said he was a
bit beleaguered by his experience, but is still unlikely to look beyond the
industry he has worked in for most of his career. “I’ll be selling flooring
somehow, don’t ask me why.”
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