After dismissing 2,700 workers through text and email last month, the owner of an American furniture firm purportedly “disappeared” but was supposedly trying to save face by staying under the spotlight. He has since reappeared and described the circumstances as “agonizing.” After being fired from furniture manufacturers in Mississippi, North Carolina, and California, David Belford reappeared a few weeks later and talked to a local newspaper, telling them he was “devastated by the turn of events,” according to a story in the New York Post.
Just a few days before Thanksgiving on November 21, all workers of United Furniture Industries were dismissed. They were denied in a single night with immediate effect.
Some sources assert that the businessman from Ohio has been discreetly helping the company wind down, playing an active but discreet part in the liquidation, and even rehiring a few staff.
In a different interview, Belford appeared to shrug off responsibility and claimed he was a “passive investor” with no knowledge of the business’s finances.
According to press reports and court papers, the owner of United Furniture Industries has made headlines in the past for his charitable work despite getting into legal scuffles and lengthy bankruptcy processes.
David Belford participated in the 2005 liquidation bankruptcy
The Flying Horse Farms camp for sick kids, which he and his wife, Jenni, co-founded, is one of the groups that get assistance from the Belford Family Charitable Fund, which he created in 2008. In addition, he and his investment company, Stage Capital, are recognized as the camp’s creators and owners.
David Belford founded a charity for sick children and gave $10 million to establish a spinal cord injury research Centre at Ohio State University’s Wexner Medical Center, a facility named after Victoria’s Secret’s billionaire founder, Les Wexner. David Belford made headlines last week for abruptly terminating jobs and health insurance for his 2,700 employees.
According to court papers, Belford has also been implicated in litigation and bankruptcy processes where it is claimed that he has engaged in “fraudulent transfers” of money and “brazen violations” of non-compete agreements.
After being acquired for $15 million by its new owner, the cheap furniture business American Freight, which his brother Steve established 28 years prior and later sold, sued Belford last year because he had stolen trade secrets and broken non-compete agreements. The lawsuit also cited Asaph Rink, the former CEO of American Freight, his investment firm Stage Capital and the business he operated, Surplus Freight.
Belford also participated in the 2005 liquidation bankruptcy of Nationwide Warehouse and Storage, LLC, a retailer of low-cost furniture and bedding. According to court filings, the trustee for Nationwide Warehouse claimed that Belford got the $35 million through “fraudulent transfers” and sought to recoup it from Belford in an “adversary proceeding.”
