Why Comerica Bank Sucks!
There's a company here in Norwalk called Norwalk Furniture. You may have heard of them since they are one of the largest custom furniture companies in the United States. They have been one of the largest employers in the city. Hundreds of people and families work there. Since 1902, generations of people have called Norwalk Furniture their work and family.
Comerica Bank, the same company that spent millions for naming rights to the Detroit Tigers Stadium, have now found themselves in the middle of a storm. See, Comerica is one of those banking companies that just shelled out loans to everyone regardless of credit history. Now, with record foreclosures, Comerica is feeling the pinch. The stock is dropping and they're losing money. They recently closed the last Comerica branch in Ohio. Before they completely leave Ohio though, they demanded Norwalk Furniture immediately pay their $11million loan and line of credit. This was for no other reason other than they didn't want to have any accounts left in Ohio. In fact, Norwalk Furniture was Comerica's first Ohio customer.
Most companies don't just have $11M sitting around for the heck of it. Neither did Norwalk Furniture. Comerica demanded the company close and liquidate all assets. That means thousands of employees without a job in Norwalk, Ohio, plants in Tennessee, Mississippi, and at the retail stores all over the United States. That's exactly what has happened. Norwalk Furniture has been trying to communicate with Comerica, and so have potential investors seeking to pay Comerica $9M instead of liquidating the company. Comerica has refused to accept the calls. Yes, Comerica was refusing to even discuss the matter with Norwalk Furniture or investors.
Now, the state steps in and offers the company a low-interest loan, the story has made it all the way to the UK, Rep. Sherrod Brown is involved and the Dept of Labor has been contacted. Former Ohio Attorney General & current Lt. Gov. Lee Fisher recently toured the plant to get an idea of what was happening. Thursday, a group of 50 Norwalk Furniture employees went to Detroit to protest in front of the company headquarters and were met by private security and Detroit Police.
Guess what? Comerica has finally decided that it's not in their best interest to keep screwing over customers. The bad publicity has hit them hard and they have finally agreed to sit down with the company. Norwalk Furniture was allowed to open temporarily to complete and ship current orders.
But, it shouldn't end there. This company would not "rethink" their position unless there was public outcry and bad publicity. They would have forced thousands of people into unemployment causing a tremendous drain on local governments. I don't believe they should be able to slink away without any repercussions.
***UPDATE***
Friday, July 25th, Norwalk Furniture issued a press release. It's the biggest bunch of ass-kissing I've ever seen. I'm sure this was Comerica's #1 demand before renegotiating the loan.
NORWALK, Ohio, July 25 /PRNewswire/ -- Comerica Inc. is offering its assistance to Norwalk Furniture to continue operations and help save the jobs of as many as 2,000 workers across Ohio, Mississippi, North Carolina and Tennessee.
Financial issues forced a shutdown of Norwalk Furniture operations on July 21. Since the shutdown, a number of private equity firms and state governments have come forward with investment and loan proposals to allow the company to resume operations and pursue its restructuring plan. Friday, Comerica extended its help as well to resolve debt issues related to the company.
"On behalf of Norwalk Furniture, its employees and their families, we'd like to thank Comerica for its willingness to work through a tough situation on a tight schedule," said Domenic Aversa, acting CEO of Norwalk Furniture. "We are grateful that Comerica understands the importance of helping save these jobs and keeping this 106-year-old company in business."
This is sickening. This bank was had no problems whatsoever in shutting down this business. The financial issues were caused by Comerica demanding an immediate repayment of an $11M loan for no other reason besides they didn't want any Ohio customers.