by The move to release workers will allow them to begin filing for unemployment benefits as soon as possible
MORGANTON, N.C. — Luxury furniture manufacturer EJ Victor is laying off 120 of its employees as it continues to work through an insurance claim with insurer Fireman’s Fund Insurance Co., which the company said has denied coverage related to losses from Hurricane Helene in late September.
The company filed a lawsuit against the insurer on Nov. 7 in the United States Court for the Western District of North Carolina in Asheville saying that the insurer wrongly denied coverage. Because it does not know when the lawsuit will be resolved, it has decided to pay all of its employees through Nov. 22 so they can file for extended unemployment benefits announced by Gov. Roy Cooper.
“Unfortunately, the position the insurance company has left us with no alternative but to lay off many valued and skilled employees who have worked with EJ Victor for many years,” the company said in a statement issued Thursday. “We are deeply grateful to our employees who have worked tirelessly to assess and minimize the damage. We request everyone’s thoughts and prayers as we work through this disaster.”
The company said it is still employing a handful of people to handle various administrative tasks in its headquarters office in Morganton.
At this point, it hopes to resolve the matter with the insurance company quickly so it can bring others back to work and resume operations as soon as possible.
“Based on the language of our insurance policy with Fireman’s Fund and the advice of our attorneys, we believe the losses we suffered caused by Hurricane Helene are clearly covered by our insurance policy,” the company said. “When the insurance carrier denied coverage, we promptly filed suit in federal court in Asheville. We intend to pursue this suit vigorously and seek recovery for all losses covered by the policy justified by the facts and the law.”
Company CEO Richard Oliver declined further comment.
Fireman’s Fund has not responded to a previous request for comment, and further attempts to reach the company have been unsuccessful.
