Alabama cabinet maker closes, leaving hundreds of employees without a job on short-notice
Legacy Cabinet has invoked the faltering company exception for why it did not give employees 60 days notice that a closure was imminent, as required by the WARN Act.
The Eastaboga business landscape shifted abruptly over the weekend as Legacy Cabinets announced an immediate cessation of all operations. The cabinetry manufacturer shuttered its facility, leaving hundreds of local employees searching for answers after a sudden notification.
A Sudden Shutdown
The company confirmed the closure through a statement posted on LinkedIn, offering a message of gratitude to its staff, vendors, and customers. While the company lauded the hard work and craftsmanship of its team as the foundation of its past accomplishments, the reality of the situation for workers was far more jarring.
Employees reported receiving an email at 7 p.m. this past Saturday detailing their immediate termination. The notification shared online cited the federal Worker Adjustment and Retraining Notification (WARN) Act while confirming the plant's permanent closure.
Navigating the WARN Act
Typically, the federal WARN Act mandates that employers provide 60 days of advance notice before executing mass layoffs or closing a plant. However, Legacy Cabinets has invoked the faltering company exception to bypass this requirement.
In its communication to staff, management claimed they were actively pursuing capital through investment and financing at the time the 60-day notice would have been issued. The company argued that providing earlier notice would have hindered their efforts to secure the funding necessary to potentially keep the facility open. Consequently, they maintain that this notice was provided as soon as practicable.
As of now, the future remains uncertain for the hundreds of workers affected, with no immediate clarity on when they might receive their final paychecks. 205focus.com will continue to monitor this developing story.