What happened to Sangamon Mills dishcloths?


Quick Answer

The Sangamon Mills factory in New York was shut down in April 2013 for building code violations. Months later, the company was sued by the New York Attorney General for failing to deliver dishcloths that had been ordered and paid for by church and non-profit groups.

Continue Reading

Full Answer

In 2013, Sangamon Mills was almost two years behind in filling orders due to aging equipment that dated back to the 1930s. As the machines broke down, parts from one machine were used to repair others, leaving fewer machines to meet demands. The New York Supreme Court ruled that the company was barred from conducting textile business in New York until they could meet demand and have a $50,000 performance bond. Sangamon was ordered to pay $72,117.61 that had already been collected for goods not delivered, as well as a $25,000 civil penalty.

Learn more about Corporations

Related Questions