Clio Holdings Properties Close
BIRMINGHAM, Mich. – Fabricator consolidator Clio Holdings LLC shut down operations last Friday, putting hundreds out of work and without health insurance.
Clio workers got the word of the closing via email.
“Effective today at 1:30 p.m. Eastern, the Board and Management have Decided that Premier Surfaces and US Marble will be shut down,” according to a copy of the email provided to Stone Update. “Management has contacted people who will remain to help with the shutdown. All other employees are terminated as of this time.
“The decision was made by the Board and Management after careful consideration of all options. We appreciate the clear dedication you have all shown Clio Holdings, Premier Surfaces and US Marble.”
The email also noted that the company’s medical coverage “is terminated effective immediately,” meaning that post-job COBRA insurance won’t be available. Workers were advised to seek coverage via the Affordable Care Act, join a spouse’s insurance, or seek a short-term independent plan.
The email announcement came not quite two weeks after some employees went on unpaid leave on Dec. 23.
All websites for Clio Holdings and its affiliated companies went dark by Jan. 4.
Clio Holdings, founded in 2016, quickly became a large player in stone fabrication and installation by purchasing established companies. Among the largest acquisitions were Top Master of Kansas City, Kan., and Solid Surfaces Inc. of Rochester, N.Y., in 2016, followed in 2017 by US Marble of Remus, Mich., and Alpharetta, Ga.-based Premier Surfaces Inc.
Top Master, Solid Surfaces and most other Clio-acquired companies moved the Premier Surfaces brand in December 2017. US Marble retained its corporate identity.
Clio also advanced a Clio Surfaces brand for a planned expansion into showrooms for high-end countertop/kitchen design. One location opened in spring 2018 in Edina, Minn.
At the time of the original Premier Surfaces acquisition in May 2017, a Clio Holdings press release stated that it had “nearly 1,000 employees” in 17 locations nationwide.
Clio didn’t reveal any terms of its acquisitions. In June 2017, Providence, R.I.-based Citizens Bank announced that it had increased its credit facility with Clio to $37 million
Clio Holdings ownership consisted of investment firms Oakland Standard Co. of Birmingham, Mich.; O2 Investment Partners LLC of Bloomington Hills, Mich.; and Tecum Capital Partners of Wexum, Pa.
Oakland Standard Managing Partner Bryan Tolles, the founder Clio Holdings and holder of a minority interest in the company, resigned from its board several months ago “after a long disagreement with the strategic direction and management of the company.
“I am disappointed with the outcome of a business that had so much potential. In my opinion, the board of directors made certain decisions that were reckless and lacked consideration for key stakeholders including employees, suppliers and customers.
“With specificity to the employees, I’m saddened by the speed and timing of this transition,” he said. “They deserved far better.”
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