United Furniture, a privately-owned, furniture company base in Okolona, 22 miles south of Tupelo, shut down last week leaving 2,700 employees nationwide without a job, including several hundred in Mississippi.
United's board if directors notified employees in an email blast last Tuesday just after midnight.
The email said the board decided to cease production immediately “due to unforeseen business circumstances,” according to the Winston Salem Journal.
“Your layoff from the company is expected to be permanent, and all benefits will be terminated immediately," the email stated.
According to the High Point Enterprise, several of the employees have filed lawsuits against the company seeking two months' pay and other compensation.
The lawsuits against United Furniture Industries cite the federal Worker Adjustment and Retraining Notification Act, which requires companies that employ at least 100 workers to provide 60 days' advance notice of plant closings and mass layoffs affecting 50 or more workers.
United Furniture makes upholstered furniture in the U.S. under its brand and the Lane Home Furnishings brand, which it acquired in November 2017 from Heritage Home Group. The manufacturer also imports wooden bedroom and dining furniture.
It is unclear how many of United's employees were bases in Mississippi, but it appears to be a significant percentage of its 2,700 laid off employees.
A Mississippi Manufacturer's Association press releases stated United has facilities in Nettleton, Tupelo, Okolona, Hatley, Sherman, Vardaman and Amory in Mississippi.
