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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 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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