retail | Apr 19, 2024 |
Pirch permanently shuts down

Southern California–based luxury kitchen, bath and appliance chain Pirch sent an email to staff earlier this week announcing that the company was permanently shutting down.

“We want to thank you for your efforts over the past few months, which have been a challenge,” the company’s chief human resources officer, Jan Sangl, wrote in the email, which was obtained by The San Diego Union-Tribune. “The Board and management team explored a variety of options to chart a path forward for Pirch, and we are disappointed to let you know that we are ceasing operations, and today will be our last day.”

Three Pirch executives—CEO Steve Smith, CFO Mekall Kaltenbach and COO Will Dillard—were copied on the email, which also stated that the company had processed final paychecks, and that employees needed to return their equipment.

The news marks the latest installment in a saga that began on March 20, when Pirch announced that it was pausing operations in order to “chart the best path forward.” In the weeks since, the company has faced a deluge of lawsuits—ranging from accusations of unpaid rent and breach of contract to complaints from the credit card companies American Express and Worldpay, which, combined, are now seeking roughly $43 million in customer chargebacks.

On April 4, the company filed a Worker Adjustment and Retraining Notification, announcing a round of layoffs that affected 40 employees across several showroom locations. But the company’s troubles are far from resolved: One former employee, Liza Rogers, filed a complaint the day before the WARN filing, alleging that Pirch did not notify employees before issuing the job cuts, effectively violating employment law. Meanwhile, Pirch continues to receive legal complaints from former customers—several of whom have called for criminal investigations into the company.

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