Is The Longaberger Company Still In Business?

The Longaberger Company was founded in 1973 by Dave Longaberger in Dresden, Ohio. It grew to become America’s leading manufacturer of handcrafted maple wood baskets and other home decor products. The company was well-known for its medium and high-end baskets that were collectible items and passed down through generations. The Longaberger headquarters building, shaped like the company’s signature basket, became an Ohio landmark. However, after years of declining sales, the company filed for bankruptcy in 2018 before ceasing operations in 2022.

Founding and Early Growth

The Longaberger Company was founded in 1973 by Dave Longaberger in Dresden, Ohio. Dave Longaberger was inspired to start the company due to his appreciation for the skill and artistry of handcrafted baskets (1). The company started out small, with Dave Longaberger and five basket makers producing baskets by hand in a barn (2). Longaberger’s baskets, made from maple wood, became known for their exceptional quality, craftsmanship, and attention to detail.

In the late 1970s, Longaberger began using a direct sales model, recruiting and training independent sales associates to host basket parties and sell the baskets through home shows. This helped the company rapidly expand its sales throughout the 1980s and 1990s (2). By the mid 1990s, there were over 48,000 independent Longaberger sales associates hosting parties and selling baskets (1).

Longaberger’s headquarters, known as the Longaberger Basket Building, opened in 1997 in Newark, Ohio. Shaped like a giant Longaberger Medium Market Basket, it drew national attention and became a tourist attraction (2).

Peak Popularity

The Longaberger Company experienced rapid growth starting in the 1990s and reaching its peak in the early 2000s. Sales skyrocketed from just $10 million in 1990 to over $1 billion in 2000, the company’s best year ever (Source). Longaberger baskets became immensely popular home decor items in the 1990s and were found in millions of American homes. According to one source, Longaberger “ranked as one of the 500 largest privately held companies in the U.S.” in 2000 at the height of its popularity (Source).

Challenges in the Late 2000s

Longaberger faced declining sales and profits in the late 2000s. After reaching its peak in 2000 with $1 billion in sales, the company began to experience a slow decline over the next decade. By 2007, sales had dropped to around $700 million, more than a 30% decrease from the peak. Profits also fell during this time. There were several factors that contributed to these challenges.

One major issue was increasing competition from cheaper baskets being imported from places like China. Longaberger prided itself on handcrafting baskets in Ohio, which became difficult to compete with on price. Additionally, consumer tastes and shopping habits were changing. Catalog and in-home shopping became less popular as e-commerce sites like Amazon grew. Longaberger was slow to adapt to this shift online. Between declining interest in their core product and outdated sales models, the company struggled to attract new customers while holding onto its longtime fans.

Internally, Longaberger experienced turnover in its executive leadership after the death of founder Dave Longaberger in 1999. There was no clear succession plan, which led to disputes over the company’s direction. With falling revenue, Longaberger resorted to layoffs and closing manufacturing facilities to cut costs. But these reductions impacted morale and productivity. By the late 2000s, the once fast-growing company was stuck in a downward spiral of decreasing sales, profits, and workforce.

Attempts to Turnaround

In the late 2000s, Longaberger began to face challenges due to declining sales. By 2013, the company had racked up nearly $1 million in debt (1). In an attempt to turn things around, Longaberger hired John Rochon Jr., an experienced executive, as CEO in 2016. Rochon aimed to strengthen the Longaberger brand and improve its products (1).

However, Longaberger continued to struggle. In 2017, the company closed nearly half of its 60 retail stores and laid off over 150 workers. These difficult decisions were made in order to cut costs and stay in business (1). Longaberger also hoped to boost sales by allowing independent sales associates to open their own micro-stores (2).

Despite these efforts, Longaberger filed for bankruptcy in May 2018 after continued financial losses. The iconic Longaberger basket building was foreclosed on as part of the bankruptcy proceedings (3).

Sources:

(1) https://www.columbusmonthly.com/story/lifestyle/2017/04/19/the-longaberger-basket-case/21335093007/

(2) https://en.wikipedia.org/wiki/The_Longaberger_Company

(3) https://roadtrippers.com/magazine/longaberger-basket-building/

Bankruptcy Filing

In May 2018, The Longaberger Company filed for Chapter 11 bankruptcy protection. This came after years of declining sales and mounting debt. According to court documents, Longaberger owed more than $11 million to creditors and had only $1 million in assets (1).

The bankruptcy filing cited high costs, decreasing sales, and challenges keeping up with technology as reasons for the company’s financial problems. Longaberger had not turned a profit since 1999 and tried various turnaround efforts over the years without success (2).

As part of the bankruptcy, Longaberger planned to sell its famous basket-shaped headquarters building. However, the building did not sell at auction as expected. After filing for bankruptcy, Longaberger suspended operations in May 2018 while it tried to restructure (3).

Sources:
(1) https://www.wkyc.com/article/money/business/how-the-longaberger-basket-empire-slowly-unraveled-after-2000-peak/95-621101017
(2) https://www.newarkadvocate.com/story/news/2018/12/30/no-1-story-2018-longaberger-company-goes-out-business/2390746002/
(3) https://roadtrippers.com/magazine/longaberger-basket-building/

Relaunch Attempt

In 2020, the Longaberger brand and assets were purchased by Xcel Brands with the goal of reviving the company primarily through online sales (Source 1). The new owners sought to leverage the strong residual brand awareness of Longaberger and introduce the products to a new generation of customers.

The relaunched Longaberger debuted on QVC in November 2020 with a focus on baskets and other home lifestyle products. It adopted a social selling model similar to direct sales but with a digital focus, relying on independent stylists to market products through social media (Source 2). The goal was to modernize the Longaberger business model while still tapping into the enthusiasm of its loyal fan base.

The new owners expressed optimism that Longaberger could once again thrive as a digitally native brand. However, the ultimate outcome of this relaunch attempt still remains to be seen.

Closure Again

In 2021, Longaberger faced more challenges and was forced to close again due to the COVID-19 pandemic. The pandemic created numerous difficulties for retailers and consumer businesses. With decreased foot traffic and consumer spending, many companies struggled financially. Longaberger was still rebuilding from past challenges and did not have the resources to withstand the pandemic’s economic effects. As this article notes, Longaberger closed its headquarters and warehouse in Dresden, Ohio once more in 2021, citing the impacts of COVID-19 as a primary reason. The pandemic ultimately proved too difficult for the relaunched Longaberger to overcome. With more closures and revenue declines, the company was forced to cease operations again just a few years after reopening.

Current Status

Despite some hopes and rumors that the Longaberger company might make a comeback, the facts show that the company remains closed as of early 2023.

Longaberger filed for bankruptcy again in May 2018 after unsuccessfully trying to relaunch the previous year. Since then, the company has ceased operations. The Longaberger website is still viewable, but primarily serves as an online museum and does not appear to be actively selling products.

Some small signs of life remain – the Longaberger website has a few 2023 basket designs listed, implying they may still make limited productions. However, there are no options to purchase baskets directly. The company’s headquarters building in Ohio was sold in late 2021 and will likely be redeveloped.

After nearly 50 years in business, the Longaberger company struggled to adapt to market changes and retain its identity after the death of its founder. While its baskets remain collectible items, Longaberger has faded from its height of popularity and prosperity. The company appears closed with no signs of returning as of 2023.

The Future

The future of Longaberger remains uncertain ever since the company closed its doors again in 2018. There has been speculation that Longaberger may attempt another relaunch, but no concrete plans have been announced. The brand has a loyal following who would love to see it return, however the basket market faces stiff competition nowadays. With the original founders no longer involved and multiple failed revival attempts, it’s unclear if Longaberger can ever recapture its previous success.

Some have suggested the iconic Longaberger Basket Building may find new life as a hotel or tourist attraction if the company remains shuttered. Its unique shape makes it an eye-catching landmark, though maintaining the structure without an occupying business poses challenges. For now, the building remains closed to the public while ownership is in limbo. The uncertainty surrounding both the Longaberger brand and its famous headquarters building exemplify the struggles facing the company’s future.