CONNERSVILLE, Ind. – Wayzata Home Products said that market uncertainty associated with the coronavirus played a role in its decision to shut down its manufacturing operation, immediately laying off its entire workforce of 140, according to Inside Indiana Business.
The company said in the notice that the inability for the company to secure capital investment also was a major factor.
“The recent material market and financial impact of the global spread of the coronavirus, including significant developments over the course of the last few days and the fact the company’s existing investors notified the company…that they would not make the additional capital investment required to sustain the company’s operations, led to the decision to shut down,” the company said in a statement.
In August 2015, the state announced Wayzata intended to invest $12.5 million to buy and refurbish the former Visteon plant.
The company produced cabinets for the home remodeling market under the CliqStudios brand name and was based in Edina, Minnesota, according to Twin Cities Business. Details of the shutdown were made public through a company filing with the Minnesota Department of Employment and Economic Development (DEED).
Per the company’s letter to DEED: “Due to significant and recent unforeseeable business circumstances, including the market and financial impact of the global spread of COVID-19 (commonly referred to as ‘coronavirus’) and the company’s unsuccessful efforts to obtain additional capital investment, the company has made the decision to permanently cease all of its business operations effective today, March 13, 2020.”
There was no advance notice about the Wayzata Home Works/CliqStudios shutdown. The company’s filing suggests that business deteriorated quickly and cites COVID-19 as a key factor.