Wednesday, May 18, 2016

IBS Employees File Class Action Lawsuit

Cumberland County modular home builder files for bankruptcy

An article in the Central Penn Business Journal

Cumberland County-based Innovative Building Systems LLC, the parent of several modular home building companies, including Excel Homes Group LLC, has halted operations and filed for Chapter 7 bankruptcy.

The move impacted 280 Excel workers in Lower Allen Township and 11 in Perry County, according to a recent Worker Adjustment and Retraining Notification Act (WARN) notice filed with the state.

In its bankruptcy filing, IBS listed assets of about $5.2 million, and liabilities of nearly $17 million.

Last year, Jolene Myers, president and CFO of IBS, told the Business Journal that the company was looking for more acquisitions as it continued to rebound from the economic downturn.

IBS built 1,000 homes in 2014, with revenue of about $100 million. The 2014 production represented a 30 percent increase over 2013, but about a third of what Excel produced in 2004 and 2005, Myers said.

Excel produced about 3,000 homes annually during that 2004-05 period.

In a subsequent court filing, a class-action lawsuit was filed against IBS for failing to provide at least 60 days advance notice of termination. The lead plaintiff, Justin Forry, who worked at the IBS facility in Rocky Mount, Va., is seeking unpaid wages and benefits in violation of the WARN Act.

CLICK HERE to read the Central Penn Business Journal article


William aka "Little Bill" said...

I think the article is wrong. The factory was in Liverpool, Perry County. The corporate office was in Cumberland County.

Do you not think that IBS would have looked into the WARN Act process before filing brankupty? I sure hope they were smart enough.

Anonymous said...

No matter how much IBS asserts that this was a last minute decision due to landlords, that can't be true because the bankruptcy paperwork has been mailed and received by all their vendors. That isn't something that happens overnight. I feel badly for all their employees, vendors and customers who are the real losers in this bankruptcy.

Anonymous said...

I hope all employees jump on this. IBS was well aware that they were not going to continue as IBS at least four weeks before the "termination of lease letter". Closing and then filing was a way to avoid there obligations to empolees, venders, and customers. This could and shoiuld be a landmark case for all the CEO's and CFO's of the country to learn from. They should be held accountable.

Anonymous said...

How do we get involved with this lawsuit. If all employees contribute a few dollars each, we could have a shot at a settlement form the officers of the company.

Coach said...

This report of a class action was included in an article that I reprinted word for word. I have no knowledge of what the class action is about or if it has been filed.

I would suggest you get your attorney to look into it.

Best of luck

Anonymous said...

IBS was aware of this far longer than a month ago. It was questioned to one of the companies they owned and even though they couldn't say 'yes' or 'no' it was known it would be happening. There was a definitive answer about the bankruptcy about a month ago given. As stated this does not happen over night so IBS knew this was coming.

Scott Simpson said...

I also worked for IBS, and I got in contact with the reporter who gave me the info on the lawsuit and the law office that is handling the case, I have left a message with them to see if one lawyer is needed or if each plant has to get their own.

Anonymous said...

With over 16 million in obligations and only 5+ million in assets, other than the lawyers, who will see a penny out of this class action? Lawyers are some of the biggest predators anymore.

Anonymous said...

I think a labor lawyer would be a great first step. If the lawyer can establish fraud the board can be held liable personally. There are laws on the books. Also all items sold three years prior to bankrupcy is subject to a evaluation of worth. There is a law on the books in P.A. called the preference law that states all undervauled transactions three years prior to filing are subject to collection from the trustie. Buyer beware!! If the correct people are contacted, and do not lie under oath, they will need to admit that for at least 30 days prior to filing, IBS was well aware of there financial issues and kept collecting deposits. The warn act should have been filed in March and then closed 30 days after.

Anonymous said...

ALL of their transactions were undervalued. Had they not been undervalued, they wouldn't have had to close their doors.

Anonymous said...

any knew news on lawsuit sure could use the money.