VIRGINIA BEACH
Virginia Hudgins arrived for her evening shift Thursday at Lillian Vernon Corp. to find some of her co-workers crying.
Within hours, she found out why. The catalog retailer, with headquarters on International Parkway, laid off more than 100 members of its core work force - just five days before Christmas.
"I didn't see it coming at all," said Hudgins, 47, who worked in the company's call center for six years and received her termination notice Thursday. "I think it's dirty. I hate them for what they've done to us."
Lillian Vernon officials declined to comment on the layoffs. Philip Read, a company spokesman, answered his wireless phone Friday and said he was no longer employed by Lillian Vernon as of Thursday. His office voice mail message still said he was away from his desk.
He referred questions to Mark McGowan, vice president of human resources, who said he had no comment. "There are seasonal layoffs," he said. "I can't comment on the rest."
Lillian Vernon, a 56-year-old retailer that specializes in personalized products sold via catalog and Internet, typically adds about 3,000 seasonal workers to its core staff of about 800 to handle the flood of holiday business. By the end of December, the company lets go those extra workers, and many arriving at the headquarters Friday afternoon said they came to pick up their final paychecks.
The termination of year-round employees at this time, however, came as a surprise to many. Alice Powell, a part-time call center employee for six years, said she was working eight hours a day, six days a week - with only Sunday off - to help the company handle the holiday surge.
"And then they call us in, without any notice, and let us go," the Virginia Beach resident said Friday. "So now, I'm out of a job with no pay."
Powell said she arrived at work around 8:30 a.m. Thursday, and a supervisor told her to come to a meeting at 2 p.m. There, a supervisor told several call center employees that they and others in the company would lose their jobs because of the rising costs of shipping, she said.
Powell said the terminated workers were prohibited from returning to their desks. Supervisors brought them their belongings and escorted them out of the building immediately after they were given notice. Some of the laid-off employees had worked for the company for almost 20 years, Powell and Hudgins said.
They said they would receive two weeks severance pay from the company if they signed a termination letter. They added that the company would avoid paying them their typical holiday bonus: two paid days off on Christmas and Christmas Eve.
"They don't have any consideration for people or family, because who would do this before the holiday, when you're supposed to be enjoying your holiday?" Powell, 59, asked rhetorically. "We've been working there too many years for them to treat us like that."
Lillian Vernon founded her company in 1951 at her kitchen table in Mount Vernon, N.Y., using $2,000 in wedding gift money to personalize and sell leather purses and belts, as the now-legendary story goes. In 2003, she sold it to Direct Holdings Worldwide Inc., a holding company created by Ripplewood Holdings LLC and ZelnickMedia Corp., both of New York.
Sun Capital Partners Inc., a privately held investment company based in Boca Raton, Fla., bought Lillian Vernon from Direct Holdings in May 2006. In March this year, the company announced that it would lose 230 workers who handled customer calls and distribution for publisher Time-Life, which was consolidated with the operations of Reader's Digest Association when Ripplewood bought that company.
At that time, Lillian Vernon's chief executive, Michael D. Muoio, said the company had annual revenue of about $175 million.
The company's attitude toward its workers has changed with the new ownership, Hudgins said. Lillian Vernon has come to value profit more than people, the Norfolk resident said.
"It's corporate America," Hudgins said. "They basically sold us out. They did not care about us."
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com
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Firings at Christmas time
I know the people mentioned in the article, and at least 7 others who were fired 5 days before Christmas. All were good at their jobs, and it's a mystery why these particular people were chosen. I wonder what management at Lillian Vernon is thinking. This is certainly not good PR for a company who relies on the local community to provide seasonal workers each holiday season. Do they really make $175 million? Must be "the more they make, the more they take" from people who really need their jobs. They're paying higher shipping costs, so they take it out on the people doing the work? Doesn't make sense. Why don't they come in and work full shifts both days on the weekends, and six days a week during the holidays? This is so unlike the Lillian Vernon Corp of even 5 years ago.
Rude, harsh comments
The people who are devastated are not seasonal temps. They are long time employees who have been there for years and had no reason to think the end of the holiday season would mean the end of their employment. By the way, I too was recently laid off and it had nothing to do with my work. Companies don't always place value on an employee based on their quality of work, willingness to work, etc. Often the people making such decisions don't even have any idea what kind of work the person they're getting rid of does, or even what they look like. I'm assuming most of Lillian Vernon's local employees were packers or call center workers. I used to do call center work. I'm sure many people in call centers would love to learn a valuable trade. Of course, there are circumstances outside of our control sometimes. I, personally, have a disability. Nursing, welding, etc would be physically impossible for me to perform. I'm sure I'm not the only one that turned to a demeaning call center job due to physical limitations. You should really try to open your mind and show some empathy. You have no idea what those people are going through.
It happens
more often then it should. People sometimes develop a mindset that enables them to believe they have become irreplaceable. You will reap what you sow. Any business will retain what they consider a valuable resource and suffer a lost if they must. Some of my favorite pet peeves are, “don’t work yourself out of a job, not my job, you do it, I will call somebody”. These folks were the first I would fire. If you are unwilling to multitask then your life will be tough. The world or your employer owes you nothing that you have not worked for. If escorted out, treat it as an honor. Apparently you were considered dangerous to them. In the shipyard we have a saying, “some weeks a feast, some weeks a famine”. Learn a trade that pays, and has job security such as a nurse, welder, etc...
someone didn't read the entire article
There's nothing "funny"in any context wen employees r laid off days b4 Christmas.These werent'seasonal'employees-if you read the article,these were employees that were w/the company anywhere frm 6 to 20 years.I'm sure they've hired people since then-recent hires shouldve been the 1's to go.BTW,pro-sports & corp.america is like apples & oranges-Would it have killed the co.to keep them for 2more wks?I think that was callous n greedy n I hope the PR ruins business.i knw im tellng my friends in ny to boycott.Overstock.com is better anyway.
House of clowns and son
Let's get real here for a moment, Ford motor plant in Norfolk was smart enough to close down ahead of schedule, they don't burn reserve cash to try and stay alive. Smart move on upper management, they know when to quit. Can LV connect them dots?
Wake up and get real.
SEASONAL
It's funny how people don't realize that most of the employees that work at Lillian Vernon are seasonal and they knew that from the time they were offered employment. I worked there and always knew last hired first fired and because of that type of business it was not always guaranteed. If you managed to stay on after the holidays because you were "core" then your card was not plucked. Trust and believe rumors ran rapid way before that day. Some just chose to believe it would'nt happen to them.
Another Example of Greed God help the Working man and Woman
Shame on the CEO's and Investment CEO's who look no further than how can I earn an extra dime, with no guilt or shame in laying off loyal workers. One day soon the low and midddle income will fight back. When is enough really enough.. How much money do thse folks need, as they pay only small wages and provide for few benefits. When will corporate Ameica realize with down sizing, closing plants and factories... Who will buy their services or products. I guess overseas investors. God Help the working man and woman. I hope the CEO's responsible for this action can sleep and celebrate Christmas. God forgive those who sin against our working poor. AMEN!!
Comment continued
From the history portrayed in the article, it appears that the writing was on the wall. When the company sold again to the Florida outfit, I would have done my research and looked in to how they conducted business. I probably would have left before this happened.
To those that were laid off, I wish you well. Perhaps this will be a good thing and you will find something better soon. Just remember, that this isn't permanent and you can get through this.
It's business
It's funny that people comment on how much executives and CEOs get compensated when there are professional sports figures making many times what company employees make just to play a game on TV. But fans still pay $200+ to see a football game, pay over $100 for a jersey, or pay more for other crap on the sport. Who are the players responsible to? Themselves. They are not responsible for hundreds or thousands of people as a Sr exec or CEO is. They are not responsible for millions or billions of assets. Responsible to fans? No, the coach and owner are though.
I agree that it's sad management at Lillian Vernon laid off the workers before Christmas. I've often wondered what I would do in a situation where people would have to be laid off around the holidays. Better before or after? People spend a lot of money on Christmas...if before, they have the opportunity to take the expensive stuff back to preserve their funds.
On escorting employees out of the building - it's an emotional thing to happen to someone. There have been many times when employees have stolen from the company as they left or vandalized property.
From the history portrayed in the article, it appe
Typical corporate america
So typical of corporate management in america. Blame overhead expenses (increased shipping costs) on the lower level employees, fire the lower level employees who do all the work, but keep the upper tiers, who do what, use their brain power(?) and cost outrageous sums of money. Are they going to start answering the phones or packing the products, I don't think so! Oh I know, they're going to ship their call center overseas to save money to some third world country, where it's anybodys guess if you'll even get close to what you ordered, since english is not spoken there! Seriously though, Lillian Vernon sells cheap chinese garbage we can all live without. And Del. Suit wonders why the real estate market is stressed, just look around, typical corporate america!
That's ok.....Blankfein got $68 million for a year's work.
Once a company is bought out by an investment firm, it's only a matter of time before they "slice and dice" the company's assets, and eliminate layers of management and large groups of employees. Unfortunately, this happens all too often in Corporate America. The answer is....keep your perspective on your relationship to your Company. Know that they'll drop you fast, if profits tank. Never get comfortable in a job. Keep your skills, and your resume, up-to-date. Last thought, from today's headlines: "Goldman Sachs CEO Lloyd Blankfein Taking Home $68.5M in Pay". Doesn't seem fair, somehow, does it? Merry Christmas!
Sweatshop Friendly State
Lillian Vernon is a sweatshop business and this is truly disgusting. The "termination letter" employees are pressured to sign for that needed money is to prevent them from being able to get unemployment compensation. Note that we as workers are expected to sacrifice our time for crazy schedules and give 2 weeks notice before leaving but when it's time for us to be layed off or fired it's instant and we can't even return to get our things from our desks. Shame on these practices and shame on the "at will" anti-working people laws that this state has passed to make it "business friendly" at the expense of honest, hard working, tax paying citizens. Lillian Vernon is not alone in these despicable practices.