‘Insurance company has left us no choice,’ says EJ Victor as it lays off nearly all employees

MORGANTON, N.C. – On Nov. 15, high-end furniture manufacturer EJ Victor made the decision to lay off nearly all its employees. The decision came after Hurricane Helene ravaged the company’s Morganton plant in late September, rendering it inoperable.

The company’s insurance provider, Fireman’s Fund, then allegedly failed to provide coverage, prompting EJ Victor to sue.

Now, the company has put out a statement:

“The damage caused by Helene brought all our manufacturing operations to a halt, damaged our equipment and inventory, rendering some equipment beyond repair and much of our inventory a total loss.

“Based on the language of our insurance policy with Fireman’s Fund and the advice of our attorneys, we believe the losses we suffered caused by Helene are clearly covered by our insurance policy. When the insurance carrier denied coverage, we promptly filed suit in federal court in Asheville. We intend to pursue this suit vigorously and seek recovery for all losses covered by the policy justified by the facts and the law.”

The company goes on to say that it will pay all 121 impacted employees through this Friday, Nov. 22. After that date, it has encouraged employees to apply for extended N.C. unemployment benefits.

“Unfortunately, the position of the insurance company has left us with no alternative but to lay off many valued and skilled employees who have worked with EJ Victor for many years. We are deeply grateful to our employees who have worked tirelessly to assess and minimize the damage. We request everyone’s thoughts and prayers as we work through this disaster.”

EJ Victor has only retained just a small number of employees in administrative roles, the company told Furniture Today.

Founded in 1990, EJ Victor specializes in high-end handcrafted furniture that it manufactures in Morganton, N.C.

See also:

• EJ Victor to permanently lay off 120 workers in Morganton
• EJ Victor sues insurance provider for allegedly failing to cover Helene flood damage