July 18, 2012WHITEFIELD — Brown Street Furniture and Vermont Tubbs ceased operations last week, explained Bay State businessman Adam Tager in a Friday afternoon phone call. "It's been a long, tough road," he said.
Twin brothers Adam and Kyle Tager, partners who bought the local business in January 2008, shuttered local operations despite a back-load of orders and a strong second quarter of sales.
Adam, who came north almost weekly to oversee the Brown Street factory, explained that cash flow and a lack of working capital were to blame. Sometimes they did not have enough cash-on-hand to buy the materials they needed to fabricate the goods that customers had ordered.
"The bank is not foreclosing, giving us more time to bring in the new investors that my brother and I expect to have lined up in August or September," he said. "We still believe that the Brown Street operations represent a great opportunity."
The effects of the recession are also evident at their Bay State operations, Mystic Valley Traders in Woburn, Adam Tager said. The attention they gave to their northern N. H. factory resulted in some neglect of their Mass. enterprise, he said.
"The effects of the recession have taken its toll," Adam Tager said, adding that although the Boston area economy is strong their business is dependent on selling into the national hospitality and furnishings market.
"The hardest part of this is knowing that we've had to lay off our hard-working and dedicated workers," Adam Tager said. "They and their families are affected in a time and place where being able to replace these jobs will be very difficult. And we weren't able to give them as much notice as we would have liked."
Brown Street workers lived within a 50-mile radius, from Groveton to Lunenburg to Berlin and beyond.
For the last four weeks, the Tager partners leased their factory to a customer who decided to complete his own order by running the factory himself on a short-term basis.