The shutdown and bankruptcy of Mitchell Gold Co. — until recently the owner of the nearly 35-year-old Mitchell Gold + Bob Williams brand — left millions of dollars’ worth of home furnishing purchases stuck in supply chain purgatory.
Thousands of products were being stored with third-party logistics providers, many ready for delivery. There was just one problem: The providers hadn’t been paid yet to deliver them.
For customers, the situation has been a nightmare — “shock and dismay,” as one letter from customers filed with the court described their reactions. Not only did many customers already pay for products still undelivered months after purchasing them, they also paid fees for shipping.
The cash paid to Mitchell Gold for delivery didn’t go to the companies tasked with delivering the furniture. As the company’s liquidity collapsed and its bank swept its accounts for cash to repay debt, Mitchell Gold ran out of money to fund its operations and make good on its promises to customers.
Earlier in November, Ryder Last Mile, which has been storing more than 2,000 Mitchell Gold products, received court approval for delivery protocols that could finally get products to customers. But customers will have to pay again for delivery, this time to the logistics company. Other providers were still trying to get the information necessary to design similar plans.
As the situation continues to play out, here is a look back at Supply Chain Dive’s coverage of the Mitchell Gold bankruptcy-logistics debacle.