DRESDEN, Ohio — On May 4 sales consultants for Longaberger baskets were told to stop taking orders as the company had ceased operations. Other communications with sales associates seem to hold out hope that the company may not be gone for good; but for right now; things are not looking good for the basket maker.

“The company sent a note to its sales consultants Friday saying, rsquo;Longaberger, at this time, has ceased operations,rsquo;” according to The Columbus Dispatch.

The Longaberger Company was at one time, Americarsquo;s premier maker of handcrafted baskets. Originally based in Newark, Ohio, the company thrived because of the thousands of independent Home Consultants across the United States who sold Longaberger products direct to customers. The Longaberger Company was founded in 1973 by Dave Longaberger, and became a $1 billion business in 2000, when it employed more than 8,200 people.

Besides the beautiful handcrafted baskets produced by Longabergerrsquo;s skilled artisans – who signed each basket made; Longaberger Companyrsquo;s office building shaped as a Longaberger picnic basket; at seven stories high, was also a major draw. The town of Newark, Ohio, became a destination for Longaberger basket (and later pottery and signature items such as clothing, blankets and jewelry to name a very few) enthusiasts. Dave Longaberger and Longaberger baskets put Newark on the map.

The company enjoyed great success in part to Dave Longabergerrsquo;s dedication. When he fell ill, the company struggled. When tastes changed, sales of Longaberger products took a hit.

According to an article by Ted Nuyten written May 5, for www.businessforhome.org, Dave Longabergerrsquo;s daughter, “Tami Longaberger became president of the company in 1994, while her father remained as chairman. She took more of a leadership role as her father battled kidney cancer in his final years.

“The Ohio, USA based company has struggled for more than a decade, with sales plummeting to roughly $100 million annually and employment dwindling to 230 employees, including 68 at its Newark corporate office, which had 500 employees shortly after it opened in 1998.”

The Longaberger Company became part of CVSL-JRJ Networks, a growing federation of direct-to-consumer companies, in 2013. Within CVSL, each company retains its own separate brand identity, sales force, and compensation plan.

Nuyten continues, “Tami Longaberger, who led The Longaberger Co., a direct seller of home and lifestyle products, since her father died in 1999, resigned as chief executive officer and director of the company in 2015.” A lawsuit followed indicating all was not well. Info concerning that lawsuit can be found here www.businessforhome.org/2015/06/tami-longaberger-battles-cvsl-over-exit

After Tami Longaberger left, Longaberger parent company CVSL – JRJR Networks announced in 2015 that John Rochon Jr., vice chairman of CVSL – JRJR Networks and son of the chairman, had taken over as Longaberger chairman, president, and CEO.

With Dave gone, and his daughter stepping away from the company, the Longaberger Company had lost that hometown connection. Longabergerrsquo;s independent Home Consultants were still very active, but for many collectors, it just wasnrsquo;t the same.

Then collectors learned the iconic Longaberger basket building was up for sale. A little under two years ago Longaberger left its famous basket-shaped headquarters building in Newark, east of Columbus, and late last year had moved 25 miles further east to Dresden.

Thankfully, an Ohio company stepped in to save the structure. According to Dayton Daily News, “A development firm that has done work throughout the Dayton area will be re-purposing the iconic basket-shaped Longaberger Co. building. Coon Restoration and Sealant Inc., based in Louisville, Ohio, near Canton, purchased the basket building located in Newark late last year.”

The situation seems dire. The Longaberger family is no longer connected to the company. The company is no longer located in Newark. The Longaberger basket building is no longer the companyrsquo;s headquarters; and now a “ceased operations” statement has been issued.

But maybe this news of Longabergerrsquo;s closure is not so final. In Nuytenrsquo;s article, he released a statement that Longaberger had sent to its consultants following the “ceasing operations” declaration. It reads:

“Together with the commitment and dedication of our Sales Field and Customers, we have weathered some extremely difficult times. Now is one of the most challenging times we have ever faced.

“We have all worked hard to maintain sales, reduce overhead and manage expenses. We believe these cost savings measures alone will eventually put us into a strong position for moving forward.

“However, at this time, our senior Bank lender is sweeping our cash daily, leaving us temporarily without access to operating cash to run the business or make statutorily required payments, like sales tax and payroll tax.

“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.”

Social media chatter among Longaberger consultants echo these statements. Possibly the companyrsquo;s stating it is “ceasing operations” is not the full story. Longaberger basket employees, collectors, and consultants are keeping their fingers crossed.

Contact: (740) 518-8018

www.longaberger.com