A class action lawsuit has been filed against the flooring company for allegedly violating terms of the Worker Adjustment and Retraining Notification Act. The lawsuit was filed in Federal Court in New Jersey and is seeking to collect 60 days' worth of pay and benefits for former employees.
In 2005, SPI Floors merged with Hoboken Wood Flooring, another long running family business that had sold a controlling interest that year to Code Hennessy & Simmons LLC, a Chicago private equity firm. The reshaped company built up debt to fuel an expansion, bus closed in October 2007. Nearly 900 employees were only given a few days notice regarding the closure. In November 2007, the company then filed for liquidation under Chapter 7 of the US Bankruptcy Code in Delaware.
