'A lot of people had a hand in it'

This was one Friday night I will never forget. It was the night the face of Norwalk changed forever. In July 2008, I was finishing the Saturday edition of the Norwalk Reflector. It was a routine night. I was sitting in the office when I heard a knock at the front door. Standing there was Jim Gerken, chairman of Norwalk Furniture Corp. I had received a tip earlier that night, so I was expecting something. Gerken handed me a one-paragraph statement, saying the 100-plus-year-old furniture plant was halting operations. Here is how Thomas Russell of FurntureToday reported it on July 28, 2008. NORWALK, Ohio — Upholstery manufacturer and retailer Norwalk Furniture has halted operations at the company's plants in Ohio and other states. Bob Wanat, the company's interim chief operating officer, told Furniture/Today last week that Norwalk had suspended operations while the company continued to negotiate its operating capital position with its bank. More than 800 employees were affected by the announcement, which was made Friday, July 18. A company spokesman, Joe Mosberg, said at press time last week that the company was talking to its bankers "and we hope to get a speedy resolution." The Norwalk Reflector newspaper reported that according to a notice from Norwalk, the company has not filed for bankruptcy protection and was continuing to evaluate its options. That included seeking an investor to acquire a minority stake in the business. In addition, several newspapers and other sources reported that Norwalk city and Ohio state officials are working to lend their assistance. Neither company Chairman James Gerken nor acting CEO Domenic Aversa were available for comment on the negotiations. Gerken did tell Furniture/Today that the company's showroom at this week's Las Vegas Market will be open. Gerken told the Norwalk paper that he hoped to find an investor within a month. The announcement follows an earlier decision by former President Rick McKirahan and his wife, Debbie, Norwalk's creative director, to leave the company, and the departure of two other executives. The company has since hired Chicago-based Morris Anderson & Associates to help run the company during the transition. According to Furniture/Today's Top 100 ranking, Norwalk ended 2007 with 54 franchised and five company-owned stores with total estimated furniture, bedding and accessory sales of $90.8 million, down 8.1% from the previous year. The store network ranks No. 73 on the Top 100. Norwalk retailers contacted for this story had mixed reactions to the news and said that for now, they are promoting their other furniture lines. Thomas Carlisle, owner of the Norwalk Furniture & Design franchise in Little Rock, Ark., said he remained "cautiously optimistic Norwalk will be able to move forward." "My take is Norwalk is a 106-year-old company that has been through the Great Depression and the World Wars," he said. "Business for all furniture manufacturers and retailers has been challenging, but I'm optimistic, as a 10-year franchisee in Little Rock, they will survive." *** Sue Lesch was mayor at the time in Norwalk and she remembers it all too well. Current mayor Dave Light got stuck with COVID-19 when he took the job. Lesch got stuck with a recession. She was mayor from 2004-12. "I know our worst unemployment was January 2009 when it was 19.8 percent. Worst in the nation," Lesch said. "We lost all of that manufacturing. Jim Gerken was one of the first people I went to see when I was elected (in 2003). "They struggled with the economy and China beat their turn-around time. They were building furniture on their boats coming over here," she added. "They worked to stay open. They worked hard to keep that factory open but there were challenges on so many fronts. The union contracts and the cost of health care." Lesch said the city was in frequent contact with the business. She recalled sitting on a picnic table at Norwalk Furniture for several hours on a Sunday, trying to figure out a way to save the company. "It was just such a change, not only in costs, but a change in the relationships with people," she said. It was a real battle trying to save the company that carried the city's name. "Jim talked about his commitment to the community," Lesch said. "They built Norwalk Furniture in the city limits so Norwalk would have the benefit from the taxes." But the clock just ran out. "The bank in Detroit was going to cut off the loan ... that was the big thing that hurt," Lesch remembered. "The employees went up there and protested. Everybody was trying to get something done. An investment group came in to buy it and after two weeks they pulled out. "Then the chamber got involved. The economic development group got involved. Then we got involved." Fast forward to today and the company is still producing furniture every day. Why? Because the people of Norwalk wouldn't let it die. "The amazing people in Norwalk made it happen,"Lesch said. "Our successful entrepreneurs said we can make it happen. Dan White, who is a brilliant businessman, stepped in and here we are today." Lesch noted that while the company isn't as big, it's still very successful. "It became community owned," she said. "It is an extraordinary story. Credit Jim Gerken and his family. Credit the employees who were not served well by their union. You know what, this is Norwalk, Ohio and this is a great place. "There are a number of successful people who know their place in the community. We had all kinds of people who wanted this story." Lesch said there were 10 families who were very private about the entire process. Denny Camp, who had a big hand in the business side of the rebirth, currently is serving as interim president while the company looks for a permanent leader. "They didn't want the fame," she said. "They didn't want the accolades. They just wanted to save this company. The professional people put hours and hours into it. It was a pleasure to be part of it and to walk back into that plant and say people have their jobs. "It was really difficult for people. It was unbelievable. That was the good part. You just didn't give up. There was a culture change across the country — a breakdown of trust between the business people and the workers." It was a tough time for everybody during those years. "I had one year (2006) when we had a little money, and Diane (former finance director Diane Eschen) said maybe we can get that new garbage truck," Lesch said. "Other than that it was cut, cut, cut. It was a good thing I grew up with nothing so I knew a lot about cutting a budget. Good people all across the board working to get things right. I think to this day we still struggle from those years. Some of those people lost pensions." But Norwalk Furniture is still standing — and doing well. "They are still making beautiful, beautiful furniture," Lesch said. "More credit to go around than I can ever list. A lot of people had a hand in it." Joe Centers is Reflector Community Editor. He can be reached at jcenters@norwalkreflector.com. He is retiring Friday and there will be an open house from 3 to 5 p.m. Friday in the Norwalk Reflector office, 34 E. Main St. Everyone is invited.