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Homecrest is no more

Homecrest, a manufacturer of high-end outdoor patio furniture for more than 50 years in Wadena, has closed its doors. "It's a sad deal, no ifs, ands or buts," said John Sundet, CEO of HC Holdings, LLC dba Homecrest. The company found out on Oct. ...

Homecrest, a manufacturer of high-end outdoor patio furniture for more than 50 years in Wadena, has closed its doors.

"It's a sad deal, no ifs, ands or buts," said John Sundet, CEO of HC Holdings, LLC dba Homecrest.

The company found out on Oct. 1 that its final effort to refinance or locate a potential purchaser was unsuccessful, he said.

"We have no choice at this time but to close," Sundet said.

The company will send out communications to people it owes money to and will start the process of selling its assets.

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Alliance Management has been retained to assist in auctioning off assets, such as the manufacturing equipment, and to wind down business operations. It will be an online auction, Sundet said.

In July, Sundet said the company knew it would have to refinance. There were several financing proposals but none of them worked out, he said. HC Holdings became the owner of Homecrest in October 2005.

About 180 people were working for the company, Sundet said. Employees were called in for a meeting on Oct. 3 to be given news that the company was closing. A few people will be employed until the business winds down in between 60 and 90 days, Sundet said. The process should be completed by the end of December.

In a letter from Alliance Management, the company expects that net proceeds from the liquidation of the assets will be insufficient to pay secured creditors, leaving no recovery for unsecured creditors.

HC Holdings does not own the building. It is owned by U.S. Bank and Sundet said the bank will probably look for another company to occupy the building.

"It's a sad day," Sundet emphasized. "Like we told the employees: 'good teams don't always win.'"

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