OpTree

We have received a couple comments as to why we have not run the story on Gold Canyon Candles. So, in order to appease our readers, here is the whole story. I want to start off by saying there are many many conflicting reports, however I will get to the bottom of it the best that I can……

On September 10th, Maricopa County sheriff’s deputies along with an entire SWAT team raided the Arizona based Gold Canyon Candle Company. The candle company makes candles that are sold through a network of independent distributors. The raid was conducted for two reasons, 1) to arrest those suspected of being involved in identity theft and 2) arresting illegal immigrants.

The September 10th raid netted 23 arrests on suspicion of identity theft and 42 arrests for illegal immigrants. An additional five U.S. citizens were arrested on outstanding warrants.
Gold Canyon Company spokeswoman Rebecca Clyde said deputies showed up with a search warrant, not only looking for illegal workers, but also looking for specific individuals on charges of identity theft. The Sheriffs Dept says that they have already verified three victims of identity theft so far, including one person who is a Washington, D.C., White House staff member working in the Bush administration.

There have been raids on several businesses in the area in the last year and in response to those raids Gold Canyon claims they have taken steps to ensure that all of their employees are in compliance with the all immigration laws. Company spokeswoman Rebecca Clyde says the company has used e-Verify since last year and has always complied with federal law. “Gold Canyon has always used every single tool that the government has given them to verify documents and done everything it legally is allowed to do to verify employees’ status,” she said.

Gold Candle remains firm in their stance that they will be found innocent of all charges related to hiring illegal immigrants. Arizona recently passed an employer-sanction law that punishes employers for hiring and employing those who are not legal to work in the United States.

There have been claims back and forth of some shady activity by the Sheriffs department and by Gold Canyon. Reports from over 100 Gold Canyon employees say that their civil rights were violated by the Sheriff’s department by being held against their will in conference rooms for up to five hours. On the other side of the fight, the Maricopa County Attorney Andrew Thomas said that they received a tip that workers were told by someone in management to toss their IDs and run if the sheriff showed up.  If you want to read Gold Canyon’s response, click here.

Only time will tell what will come of all of this. The company thus far has not been charged with any wrongdoing. The sheriffs department and attorney general say that it will take some time to sort through all of the papers, but they will stay on top of it.

As details of the raid and its aftermath become more clear, we will definitely keep you up-to-date. In the meantime, its business as usual over at Gold Canyon Candle Co. Oh….and by the way, Gold Canyon is a member of the DSA- and no word or update on the status of the company from the DSA, another example of your hard earned money at work over at the DSA.

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Belegured home goods company, Home Interiors and Gifts, which in the past few months has had some major problems including bankruptcy and the announcement that they will seek a buyer for the company, has now notified employees at its Carrollton facility that the attempts to sell its operating entities is likely to have an impact on their jobs in the next few months.

I’m sure this comes as no surprise to the employees who have known for months now that the company is in some trouble. The company filed for bankruptcy some months ago, but was making an effort to turn things around. Unfortunately, those attempts were futile and last week the company asked for, and received permission from the U.S Bankruptcy court of Northern District of Texas for approval to sell its operating entities.

In a letter filed this past week with the Texas Workforce Commission Home Interiors says employees have been informed on the impact the sale could have on future employment. The company did say however, that the sale of the assets could also potentially lead to opportunities to staff members. “The company continues to conduct operations,” Home Interiors & Gifts said in the letter. “It’s possible potential buyer(s) of the company’s assets will hire employees who received Warn Act notices, although the company cannot make any guarantee.”

Currently there are over 130 employees at the Carrollton facilities. While I commend the company for finally warning employees of the possible termination of their positions, although a bit late in the game, it would also be great if they released a statement to their distributors. The distributors have given their time, and money, and committed themselves to working for the company. The distributors are the ones that have kept the company going. It would be great if they could be honest with those distributors about what a sale of assets could do to their employment as well. And of course, needless to say, still no word from the protective folks over at the DSA.   It’s great to know how on top of these things the Direct Selling Association is - makes ya really confident in their ability to provide timely information to the people that subsidize their business and salaries.

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As we reported earlier, DSA Member company and struggling Network Marketing company, Home Interiors seems to have failed to emerge from bankruptcy after a reorganization process and is putting its assets up for sale.

Word is that executives at the firm are expected to submit bids to purchase some of its assets.

Home Interiors sells candles, artificial flowers and other home decor accessories through thousands of independent contractors.

“Parts of this thing are probably worth more than the whole,” said William Snyder, the company’s chief restructuring officer.

The new plan could mean more job losses at the company’s headquarters, he said. More than 300 people worked for Home Interiors when it filed for bankruptcy in April; the company now has 131 employees.

Under the new plan:

• Home Interiors’ business assets in the U.S., Canada and Puerto Rico will be offered as a single unit. Robin Crossman, the company’s president and chief executive, is leading a group expected to bid for only some of these assets.

• The company’s Mexican unit will be offered separately. Fabian Uribarren, president of that unit, is heading a team that is likely to purchase that entity.

•Domistyle Inc., a Dallas manufacturer and distributor of home fragrances and decor accessories that Home Interiors bought in 2002, will be offered as an independent company. Brenda Buell, Domistyle’s founder and president, is leading a team in the running to purchase Domistyle.

•The Laredo Candle unit will be offered as a separate entity, although it may be included as part of the Domistyle sale.

Mr. Snyder said Home Interiors’ largest shareholder and creditor, Highland Capital Management LP of Dallas, supports the plan. A spokesman for Highland declined to comment beyond a Home Interiors news release.

Mr. Snyder said he expects other creditors to support the plan as well.

Home Interiors was founded in 1957 by Mary Crowley; she and her son Don Carter built it into a Dallas landmark.

We will keep you up to date on this as it progresses.

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As we told you a few months ago, direct sales company Home Interiors and Gifts, has been struggling in the past year with declining sales, and a dwindling workforce. The company recently filed for bankruptcy protection. Now it seems they are on their way out.

The home goods company filed officially for Chapter 11 protection in April, and then began a restructuring of the company which included hiring Robin Crossman, a direct sales vet to help rebuild. Unfortunately, the company never got back on its feet. In June they were forced to lay off many employees and now it is looking to sell its operating entities. The Dallas based company announced that they are seeking approval from the U.S. Bankruptcy Court of the Northern District of Texas to sell its operating entities.

The home interiors and gifts company is looking hire investment banking firm Houlihan, Lokey Howard and Zukin Capital, Inc. to help with the sale. The company feels that the sale is the best way to get the highest return for the company’s stakeholders. .

A spokesperson for the company says that its operation in the U.S, Canada and Puerto Rico will be sold as one single unit while its Mexico and Domistyle, Inc subsidiary which is a home fragrance manufacturer will be sold as independent entities.

I’m not expert, but it seems like the company has been struggling for a looooong time and thing seem to be getting progressively worse, and not better. If I were a distributor of the company, I might think twice about staying involved, we all remember what happened with Weekenders. While I’m not sure if distributors have been notified by the company, at least the company itself has made the news public.

And….by the way…….Home Interiors and Gifts is a member of the DSA, yet there is no news on their site of the problems at the company. Good to know that once again the DSA is protecting their members and consumers by failing to report news on one of its member companies selling its assets.

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