E.J. Victor, a high-end Morganton furniture manufacturer, will lay off 121 workers in a downsizing related to Helene storm damages and a dispute with its insurance provider.
“This layoff is the result of significant damage to the production facility from Tropical Storm Helene and our inability to rebuild due to non-payment of our casualty insurance claim pending litigation,” the company wrote in a notice filed with the N.C. Department of Commerce about the job losses.
The layoffs are effective Friday, though the business has been hampered since the Sept. 27 storm. Workers are not represented by a union and bumping rights do not exist.
On Nov. 7, E.J. Victor filed a lawsuit against its insurance carrier, Fireman’s Fund Insurance Company, or FFIC, seeking in excess of $75,000 in damages. Fireman’s Fund denied coverage on Nov. 5 because it stated it could not “find coverage for the flood damage portion of the claim,” according to the lawsuit filed in U.S. District Court in Asheville.
E.J. Victor says it has paid its premiums and the insurance company should pay up.
“Although the policy plainly requires FFIC to pay EJV for its losses, FFIC has refused to do so. FFIC’s refusal to confirm a clear case of coverage has created significant problems for EJV and has resulted in, and will continue to result in, severe damages,” the lawsuit states. “In addition to the crippling losses to EJV’s Property, FFIC’s delay and denial has left EJV in a position in which it is unable to recommence business operations without a commitment of insurance funds to rebuild or relocate, which should never happen to a business that purchased insurance to cover exactly these circumstances.”
Fireman’s Fund Insurance, based in Novato, California, did not respond to a request for comment. The company is a subsidiary of Munich, Germany-based Allianz, one of the world’s largest financial services company.
E.J. Victor says its Morganton building suffered flood damage and wind damage to its roof. Company officials did not return messages seeking additional comment. E.J. Victor is a locally owned company founded in 1990 by Edward Phifer III, Joseph Manderson and John Victor Jokinen. CEO Richard Oliver Jr. joined the company in June 2023.E.J. Victor also has a showroom in High Point.