Lights out for Grants Pass furniture factory

Mail Tribune (Medford, OR — Wayback)

2018-07-04

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The feel-good vibe buzzed, like the saws and sanders, that November day in 2011 when U.S. Rep. Greg Walden and other community leaders visited Jefferson State Forest Products and Roguewood Furniture's operation. Forty-four people at the former Bentwood mill site on Morgan Lane in Northwest Grants Pass were happily employed, cranking out wood furniture and grocery store displays sent around the country. "I just want (Congressman Walden) to appreciate what we're trying to do here — create jobs, and grow the local economy," said a proud Bryan Redd, CEO of Upstream 21, parent company for Jefferson State and Roguewood. It happened for a while. Then, in July 2014, Gilded Rogue Enterprises and CEO Elizabeth Bauer of Ashland took over for Upstream 21. Ever since, it's been a disaster — all those jobs lost, and a spiral of unpaid bills and paychecks, say former employees and suppliers throughout the area. Ten days ago the power was turned off. Then the water. By then production had been halted for several days. That was a couple of weeks after landlords Gary and Randy White handed Gilded Rogue an eviction notice because of unpaid rent and utilities, which now totals over $30,000. The Whites, who founded Bentwood in 1979, make their own furniture — Rogue Valley Furniture — adjacent to the Gilded Rogue operation, and own the 44,000-square-foot facility housing both businesses. Gilded Rogue also made furniture sold in the White's showroom on the same property. "We lost our biggest vendor by far," Gary White said. "I'm not trying to get back at her. It's just what's happened to us. $10,000 a month is going out the door." "She bounced the very first check she wrote to us," added Josh White, Gary's nephew, owner of the Rogue Fly Shop in the same building and manager at Rogue Valley Furniture. "Every single vendor has had problems with her." The Whites also can't do anything with the space — where people could be working — until Gilded Rogue vacates or files for bankruptcy. Bauer responded by email to questions about the situation. "Our goal is to get people back to work as soon as possible," Bauer wrote. "We are working through a variety of solutions right now to right-size expenses and restart operations strong. We appreciate the support of Roguewood's dedicated team members, our suppliers, and our customers and look forward to sharing more news very soon." Former employees would like to hear some news about their paychecks. Gabe Padilla, 53, said he quit April 17 because he wasn't getting paid. He's now working with the Whites again, after starting with them at Bentwood 14 years ago, before it sold to Upstream 21. He said Gilded Rogue owes him $2,000. He filed a complaint with the state labor board, one of 13 complaints filed by former employees. Employees never knew whether their paychecks would be good. "We used to run down to the bank. If you were the last one you weren't getting your check cashed," said Padilla, a skilled furniture maker. "Nothing but headaches and ulcers … She owes me my last paycheck. She wrote me one paycheck that bounced." "I've never worked anywhere where I had to cash my check instead of depositing it," added Marty Longtain, who quit in May and says she's owed $3,000. Longtain's been on unemployment, looking for work. An accountant, she started at Bentwood in 1999. "It's had a big impact on my life. Luckily my husband was working and there was savings," she said. A major development in Gilded Rogue's downfall came when it agreed in July 2014 to take over production for Sawyer Paddles & Oars, a long-time leader in the boating industry, with operations in Gold Hill and Talent. Sawyer moved equipment and employees to the Gilded Rogue facility. But by early this year production shut down when funds ran out. Milo Shier, 48, was director of operations under Bauer, and quit because of their disagreements on business decisions, most notably the Sawyer deal. Shier started at Bentwood 27 years ago, and is now back with the Whites. He and Padilla are the only ones to move across the building. Shier said the mill wasn't equipped to make oars and paddles, and it didn't come close to penciling out. "I tried to steer the business away from doing any business (with Sawyer)," Shier said. "The next thing I know, they've moved in. It went downhill fast." Shier also said by the spring of this year Gilded Rogue lost two major grocery chain contracts worth tens of thousands of dollars, deepening the company's hole. The grocery store bins and fixtures were a mainstay of the plant going back several years. Sawyer sued Gilded Rogue for $2 million in damages May 4. Sawyer owner Peter Newport said in an email Wednesday his company settled all claims with Gilded Rogue July 1, and that it took from April to just recently to get back into full production in Talent and Gold Hill. About Gilded Rogue, he said, "They are really good at making grocery store fixtures." A "non-disparage" agreement in the settlement prohibits him from saying bad things about Gilded Rogue. The company left numerous bills unpaid, including nearly $2,000 for lumber purchased at Fields Home Center in Murphy. "They won't return our phone calls," said owner Jason Fields. Ditto for Hudson Saw & Tool in Medford, which set up saws and other equipment at the facility. "They owe us $3,500," said Jack Adams, company owner. Meanwhile most of the building on Morgan Lane is dark, waiting for legal decisions. That building has produced quality wood products for many years, including at one time for Rogue Valley Sash & Door (now Rogue Valley Door) before Bentwood. "It's been a good business for the valley," said Marianne Mcveigh, another former employee. "It's employed a lot of people through the years. It's a tragedy to watch it go away."