Tubbs Furniture saved at eleventh hour

When Rutland businessman William Carris was told by his leading lender that Carris Financial Services would have to sell or close Vermont Tubbs Furniture in Brandon to meet his required profit-to-loan ratio, it looked as though a 132,000square-foot plant that has provided as many as 250 jobs might be lost.

He had hired Lee Houston, a veteran furniture industry executive with a history of successful turnarounds, to move the plant toward profitability through "lean manufacturing" changes. But as several potential sales fell through due to financing problems, and a half dozen potential buyers walked through the operation without looking back, it looked as though Tubbs might be on a death watch as a September 30 deadline approached.

But on September 27, a new partnership announced that with strong assistance from Governor James Douglas's administration, several agencies, and KeyBank, the plant would be able to stay in operation. Douglas, who had made job preservation and creation a major part of his campaign, got high marks from leading investor Jon McNeill of Waitsfield for making good on those promises.

"Despite months of speculation about the company's survival, Vermont Tubbs will continue operations at its state-of-the-art facility in Brandon, VT," said a release from Vermont Quality Wood Products, LLC.

There would be a two-step acquisition process, McNeill said: an immediate purchase of the company, its name, its products, and so on; and purchase of the factory within 45 days.

"Vermont Tubbs' proud history began 163 years ago and we are thrilled to continue designing and building our highquality, unique solid wood furniture that is sold by the nation's top retailers," said McNeill. "This company has just needed financial stability - it's a great brand, a vibrant team of employees and has an amazingly strong customer base."

Houston said, "When I arrived at Vermont Tubbs, I found a company that was losing money. I also found an outstanding group of employees who made a superior product. In a year, those employees have revitalized this company. Now a group of capable investors sees Tubbs' potential. I am delighted that this has happened."

Houston went on to say, "I have never met a man for whom I had more respect than Bill Carris. He cares about people. Because of his concern for his employees, Vermont Tubbs has a second chance. If we had more people like him at the helm of companies, America would be a better place to live."

The problems at Carris Financial Services also forced the closing of Killington Wood Products in West Rutland, eliminating about 25 jobs. McNeill was unsure exactly how many employees chose to remain at Tubbs despite the risk of having no job, but the number was probably below the figure of 120 that Houston reported shortly before he left his post.

"It is our aim to preserve this company, save jobs and provide a strong future for our people," said Fred Musone, new head of manufacturing and operations at Vermont Tubbs. "The quality and commitment of the people who work for Tubbs is just impressive. They are resilient and committed. We are excited about becoming a part of this team."

Musone was described in the partnership release as "a nationally recognized expert in lean manufacturing and the Toyota production system." Formerly he was president of Morton International and chief operating officer of Federal Mogul.

McNeill is CEO and founder of First Notice Systems, Inc; CEO and founder of Sterling Collision Centers, Inc; and a management consultant with Bain & Company.

McNeill said in an interview that his group specialized in starting companies and turning them around. One nationwide company they began five years ago now has about 1,200 employees, he said.

In addition to that expertise, the new group brings numerous Vermont connections. McNeill said that extended to some of the unnamed, silent partners.

Among the investors is one credited by McNeill and others with working overtime to help pull the consortium together: Rutland attorney and former congressional candidate Bill Meub. With him was his MBA son Conrad, who came from Arizona specifically to help on the Tubbs project.

"It was a lot of hard work," Meub agreed. He and Conrad labored "to put together a package that has tax credits, hopefully a reduction in power cost, and a good plan for the business."

"The people who have gotten involved really believe in Vermont," Meub said. Musone, in the press release, said "We're committed to the community of Brandon and the surrounding area. It's our aim to be not only a good, but a great corporate citizen in this community."

But equal credit went to Douglas and his cohorts.

"Governor Douglas and his economic development team really got behind this effort to assist us with saving these jobs," McNeill said in the release. "Mike Quinn, Commissioner of Economic Development, deserves a lot of credit for what happened today, as does Tony Martin at KeyBank, David Robinson at the Rural Development Authority and Steve Greenfield at the Vermont Economic Development Authority."