News

Longaberger Basket Company Ceases Operations

Basket retailer Longaberger is no longer taking orders, blaming a lack of operating cash.

Published May 7, 2018

 (Wikipedia)
Image courtesy of Wikipedia

The Longaberger Co., known for both its baskets and an unusual headquarters building, is ceasing operations as of May 2018.

On 4 May 2018, the Columbus Dispatch reported that Longaberger sales associates received a "note" on that date advising them not to place any further orders:

“I am very sorry to have to tell you that Longaberger, at this time, has ceased operations,” said a note sent Friday to Longaberger sales consultants. The note advised sales consultants to “please take action as soon as possible” in contacting credit-card companies and also advised against attempting to place any further orders.

“I’m heartbroken to have to pass this information along, but I wanted to help you to get the information you need now from the website so that you can be prepared as you contact your customers,” the note said.

On 5 May 2018, southeastern Ohio media outlet WHIZ carried a press release attributed to Longaberger, indicating the company was "temporarily without access to operating cash":

Until clear resolutions are reached with the lender and certain others who seem intent on obstructing our path to success, the management team has directed the company to suspend certain operational functions, including the call center, until additional capital is secured.

Because we understand that you need access to your business information, your Consultant Back Office will remain available at this time. While your customers may still be interested in ordering, we ask that you do not close and process any orders until we know those orders can be timely filled.

As soon as these issues are resolved, we look forward to getting back to business and resuming commission payments. We appreciate your patience and thank you for your continued and loyal support.

In February 2018, Tami Longaberger (the daughter of founder Dave Longaberger) sued parent company JRJR Networks and was awarded a settlement of $2.1 million. In April 2018, the New York Stock Exchange suspended trading of shares in JRJR Network stock. No official information from JRJR Networks regarding the future of the Longaberger brand was available beyond the 5 May 2018 press release.

Sources

Feran, Tim.   "Longaberger Story Coming To An End."     The Columbus Dispatch.   4 May 2018.

Feran, Tim.   "Tami Longaberger Awarded $2.1 Million To Settle Suit Against Basket-Making Firm’s Current Owner."     The Columbus Dispatch.   16 February 2018.

Hiotis, George.   "Longaberger: Temporarily Without Access To Operating Cash."     WHIZ.   5 May 2018.

Kim LaCapria is a former writer for Snopes.