Norwalk Furniture listed as non-compliant by AG's office

Company had its tax-credit rate reduced to 50 percent for not creating enough jobs.
Scott Seitz2
Dec 22, 2013

Ohio Attorney General Mike DeWine has released his 2013 Report to the General Assembly on Award Recipient Compliance with State Awards for Economic Development. The report, which is required to be submitted by the Attorney General to the General Assembly pursuant to statute, analyzes compliance with the terms of economic development awards for recipients which had performance periods ending in calendar year 2012.

The report determined 266 awards had a performance period ending in 2012. The report found that 146 awards were in substantial compliance while 120 awards did not comply, resulting in an overall compliance rate of 54.9 percent. The report also listed compliance rates by award categories:

Workforce compliance rate: 100 percent (14 of 14 awards in substantial compliance).

Grant compliance rate: 49.5 percent (52 of 105).

Tax credit compliance rate: 53.8 percent (56 of 104).

Loan compliance rate: 55.8 percent (24 of 43).

Norwalk Custom Order Furniture was listed as non-compliant on the Attorney General's list.

Norwalk Furniture was the recipient of a job creation tax credit, with the goal of creating 260 jobs. According to the report, 145 jobs were actually created.

As a sanction, Norwalk Furniture had its tax-credit rate reduced to 50 percent for tax year 2014.

Comments

Contango

IMO, not a particularly healthy financial indicator.

Dr. Information

If the demand isn't there for another 115 jobs, how can you penalize them?

Contango

Re: "another 115 jobs,"

Such attempts at centrally planned social engineering tend to reminds me of the great literary scene in "Atlas Shrugged," where the Mexican govt. unknown to them nationalizes a worthless mine owned by Francisco d'Anconia.

The Soviets were masters at keeping unprofitable enterprises fully employed.

Even today, the Italian govt. forces an unprofitable and toxic steel plant in southern Italy owned by Riva Acciaio to remain open because of 'jobs'

Cliff Cannon

@ Contango: No doubt, a vast number of industry's in Europe as well as Asia benefit greatly from government subsidy's.


The REAL question here is: How many plants worldwide, do you think would come to screeching halt with out those subsidy's ?

Contango

Re: "How many plants worldwide, do you think would come to screeching halt with out those subsidy's ?"

Without accounting transparency it's hard to know.

"If something cannot go on forever, it will stop “ – Stein’s Law.

At one time, the Soviets were the largest shoe mfgers in the world. They based their production on quantity, not quality.

So they overproduced small sizes.

According to what I read, tons of unsold shoes ended up in landfills.

Cliff Cannon

Being an alumni of 'furniture '. I constantly inquire on how they are doing to current employee's. Everyone,I ask says they are very busy.


Of course,the number of employee's is kept as low as possible, for profits sake,so that means everyone must keep hustling. Which I think we all can agree with.


'Furniture ' also had a record setting High Point " Market " this fall. Which is certainly a very good sign. The fact, they reopened their " Vegas " showroom, for that " market " is another great sign for a bright future.


So this sanction, is counter productive in my viewpoint. Obviously,when the state loans money---they expect results. So, I am taking this view: 'Furniture ' merely set their goals to high, when they restarted that awesome company.


Here's hoping, I am correct and that they continue to grow like weeds in your garden.

Contango

Re: "Here's hoping, I am correct."

Thanks for the anecdotal info. I'm hoping you are too.

Though I never worked at "Furniture," I had family and a lot of friends who did.

From previous readings, the Las Vegas housing mkt. has been booming.

Cliff Cannon

The Vegas " market " I refer to though. Is for furniture dealers to attend, meet new manufacturers or place orders for new products with their existing suppliers.


It is like when the car manufacturers used to make a big deal out of new models. They would show the dealers. Then we the public could hardly wait for September to see 'next years ' cars. In short, 'markets' are/were a lot of fun

Contango

Re: "The Vegas market "

Got it.

We had a Norwalk living room set that we had purchased at Fisher's Wayside decades ago.

It was still in nice shape and the young couple that bought our house in Chicago didn't have a lot of furniture and so we threw it in with the purchase of the house.

Cliff Cannon

Sorry about getting so wordy regarding 'market'. Even though,I only was able to enjoy set up and take down, simply loved them. ( as well as you could tell I loved new car season)


The reason, I write now, is to let you know I am tracking a local business rumor down. That if true----will blow peoples minds--- and not in a good way either. So please root for a false rumor ( Despite coming from a very creditable source)

Contango

Re: "Sorry about getting so wordy regarding 'market'."

Not-to-worry. Understood that you were writing in "shop talk."

"Market": Trade shows like at the Merchandise Mart or McCormick Place in Chicago.

"A lie (or rumor) can travel halfway around the world while the truth is putting on its shoes."

- Mark Twain (attributed)

"Buy on the rumor, sell on the news." - Stock mkt. maxim

Cliff Cannon

Exactly like the 'trade shows' at " Merchandise Mart ". Which leads to a bit of trivia here; Did you know the Kennedy's own it ?


I understand exactly what your saying about rumors and would normally either dismiss or ignore them. However,this one has me worried and of course,getting no response to my inquires from people in the know, adds to my concerns. So we shall see.


While I have you : Merry Christmas to you and yours.

Contango

Re: " Merchandise Mart "

I always found it to be an impressive building right there on the Chicago River. I've been in it a few times.

I was unaware that the Kennedys once owned it.

As a kid when we'd sometimes travel to downtown Cleveland, my father would cajole me: Don't look up, people will think that you're a yokel.

I couldn't help it in Chicago. So many impressive buildings.

And a Merry Christmas to you and yours as well.

hit the road jack

I heard about it too (the rumor) and doubt it would happen again,you know who's involved (money wise) and they wouldn't let it happen,too deep of pockets.

gene44870

Due to the cut back that the AGs office gave them , who is to say that they wont lay-off the ones that the company hired to off set the cost that the campany is going to have to pay? .The company is not going to lose money , you can take that to the bank , The only ones in my opinion that are going to lose would be the ones that are working there

KURTje

cliFF you were a driver for Furniture? If so, what did the traFFic director die of?

Cliff Cannon

kURTje : Is this a test to see if I really worked at 'furniture ' or if I am making it up ? That's er,ah, 'unique' as who would make up something like working for a company ?


However, to answer your question. No one in our office died in my time there. Charlie Price, who was before my time, so hence, I did not know him. Died from, I heard cancer. Did I pass your test ?

2sense

What's 2 + 2

Contango

Man interviewing new accountant: What's 2 + 2?

Accountant: What do you want it to be?

2sense

I thought that was a lawyer.

Contango

Re: "I thought that was a lawyer."

Lawyers are "paragraph finders," accountants are "bean counters."

Cliff Cannon

Contango: Was told yesterday, not by a ranking member of the entity involved. That the rumor is unfounded. Hope so. Because that would be a wonderful Christmas present for all Norwalkians if it is

Contango

@ CC:

So to paraphrase Mr. Clemens: The reports of the rumor have been greatly exaggerated.

I read the story and saw the photo of Furniture's new OSU line.

I tried to imagine where I would place comparable tartan BGSU furniture. Not happening.

Feliz Navidad! Gotta play José Feliciano today!

Cliff Cannon

Contango : You have the " Fanny Farmer presents King family " Christmas album and you opened it ? Should've told you before, there is a local Fanny Farmer collecting lunatic that would've bought an unopened album on 'E-bay'. Would've brought a big buck too ( buck is not plural for a reason :)


Back to reality though. The 'furniture' OSU line is just another example of them on the move towards a bigger,better future. So they under shot their goals for their state loans. Oh well. At least,we all can say this : " Thank God they are still alive & kicking ! "


As to the 'rumor' parts of it are true. A few people from a completely different entity than 'furniture' will soon be unemployed. Thankfully, it wasn't worse.


Trust Jose Feliciano kept your Christmas party moving. Then add, the additional clue of your Aunt, no doubt, supervising at F.F. neither helps nor hinders my guess as to your true indentity. So I am sticking with my sister's ( Terry's widow ) guess as to who you are in 'real life'

P.S. You sure showed your BGSU loyalites in this comment. Because it is pronounced " THE---- Ohio State University " :)

Contango

@ CC:

Sorry, the FF album was opened yrs. ago. Regardless, sentimental - wouldn't sell it.

Nothin' against OSU. Had friends that attended and often went down and partied with 'em.

When I went to BG, the ratio was 3-1 girls to guys. SWEET!

Cliff Cannon

" When I went to BG, the ratio was 3-1 girls to guys. SWEET! "

What a bragger. Now, I remember, why I wish I would've went to college.

" Sentimental " attraction to a Fanny Farmer product ? My kind of person. ( Don't you just love the " K's " in " King family " being logo " F's " )

P.S. By the way, what a tease, you knucklehead. Spent some time today trying to draw family lines from anyone of our F.F. supervisor's to you.

2sense

So you could have just saved your breath.

Contango

Re: "your breath."

Or keystrokes & pixels. :)

2sense

Keep practicing:)

Contango

@ CC:

Taken a quick break from cookin'.

Just got through listening to: "Fanny Farmer Presents the King Family Christmas Album."

Remind me and I'll burn you a cd someday.

Hint: One of my relatives was a supervisor at Fanny's.

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