WayForth is a locally based company that provides moving, storage and related services, primarily for seniors. (Jack Jacobs photos)
Left scrambling after a failed merger, a once fast-growing local company is moving rapidly to restructure in a bid to stay afloat.
WayForth, which offers moving and related services with a focus on seniors, is in the process of laying off hundreds of employees and shutting down its multi-state operations outside the Richmond region, CEO Craig Shealy confirmed Tuesday.
The company is exiting markets in eight states and elsewhere in the Old Dominion, while its operations in Richmond are expected to continue. Its overall headcount of nearly 500 employees is planned to be reduced to 50 people.
The restructuring comes in the wake of a merger and financing transaction that was expected to boost the fortunes of WayForth, which Shealy said has struggled recently with a challenging labor market and inflationary pressures.
Craig Shealy (BizSense file)
“We were working hard to expand organically in a lot of markets in what was a very difficult labor market, especially in 2022 and up until recently, which was very costly for us,” Shealy said. “Despite that, we were working on a large transaction that would have been very good for us strategically, operationally and financially to put the company in a really good spot and be in a good sustainable position.”
Shealy declined to comment on the failed deal, which he said fell apart recently and motivated the WayForth board of directors to put into motion the restructuring plan last week in a bid to save the company.
“When that transaction failed to materialize, it just put us in a very difficult position financially, causing our board to make some very rapid decisions in terms of cost cutting,” he said.
In a company-wide memo sent to WayForth employees on Monday and obtained by BizSense, the company said: “We have been urgently seeking other partners for equity investment, strategic partnerships and other financing opportunities that would have allowed us to avoid this, but unfortunately none of that has come to fruition given the tight timelines. Our existing investors have declined to invest any additional growth capital.”
WayForth launched locally in 2016 as Legacy Navigator and later rebranded. Shealy and Pete Shrock founded the company alongside Matt Paxton, who has appeared on the A&E show “Hoarders” as an extreme-cleaning expert. Paxton is no longer involved in WayForth.
In 2020, WayForth placed second among BizSense’s RVA25, an annual roundup of the fastest-growing private companies in the Richmond region. The company grew over the years through a series of acquisitions and raised at least $32 million from investors, according to SEC filings.
WayForth’s facility at 2107 Loumour Ave. in Scott’s Addition.
The company is exiting markets in Massachusetts, North Carolina, Texas, Florida, Maryland, New Jersey, Pennsylvania and Connecticut in order to consolidate operations in the Richmond area. Its other Virginia locations in Norfolk, Ashburn and Lorton are also slated to close.
The memo stated that WayForth’s Richmond market was the company’s most profitable market this year.
All of WayForth’s out-of-town locations will stop offering moving services on Friday and will begin winding down. Among the tasks to be completed as part of that process will be returning items being held in storage for customers.
“After that point, we’ve advised clients to seek alternative providers,” Shealy said Tuesday.
Shealy said there isn’t a specific timeline to complete the restructuring. Some employees have already been laid off while others who are still employed to help with the wind-down will be let go as the restructuring unfolds.
WayForth has its local operations hub at 2107 Loumour Ave. in Scott’s Addition and a corporate office at 1518 Willow Lawn Drive.
Shealy said while there aren’t near-term plans to shutter the corporate office, he anticipated WayForth would move out of that space at some point as part of the restructuring. He said the company is still working out how the cuts would ultimately affect the corporate team, which has already seen some layoffs.
Asked whether the restructuring may involve the company going into bankruptcy, Shealy declined to comment.
Company also facing lawsuit
Amid the drawdown, WayForth was sued last week by the co-founders of a company it acquired several years ago.
The founders of senior-focused moving company Let’s Move filed a lawsuit in federal court seeking $1 million it says is still owed from the $3 million price WayForth paid to purchase the firm in 2019. Let’s Move was founded by Kimberly McMahon and Allison Pihl of Maryland. Both women became shareholders in WayForth as part of the deal.
Shealy declined to comment on the lawsuit, except to say it wasn’t a factor in the restructuring decision. Attorneys for Teamwork LLC, an entity owned by McMahon and Pihl that is the plaintiff in the case, didn’t respond to a request for comment about the suit.
The lawsuit claims WayForth paid an initial $2 million of the $3 million price tag when the deal closed in August 2019, but that it hasn’t paid the final $1 million “despite repeated demands.” That payment was due at the end of April, the suit states.
The lawsuit also gives a glimpse at WayForth’s financial state. It says the company’s gross revenues in 2022 through August of that year were about $14.8 million.
Despite the setbacks, Shealy said the company’s core customer base is still a viable market in need of the company’s services. WayForth provides moving, downsizing, packing and storage services and primarily caters to seniors.
“That population in need of that help is not going away. We have to go through a tough time to right ourselves,” he said.
WayForth is a locally based company that provides moving, storage and related services, primarily for seniors. (Jack Jacobs photos)
Left scrambling after a failed merger, a once fast-growing local company is moving rapidly to restructure in a bid to stay afloat.
WayForth, which offers moving and related services with a focus on seniors, is in the process of laying off hundreds of employees and shutting down its multi-state operations outside the Richmond region, CEO Craig Shealy confirmed Tuesday.
The company is exiting markets in eight states and elsewhere in the Old Dominion, while its operations in Richmond are expected to continue. Its overall headcount of nearly 500 employees is planned to be reduced to 50 people.
The restructuring comes in the wake of a merger and financing transaction that was expected to boost the fortunes of WayForth, which Shealy said has struggled recently with a challenging labor market and inflationary pressures.
Craig Shealy (BizSense file)
“We were working hard to expand organically in a lot of markets in what was a very difficult labor market, especially in 2022 and up until recently, which was very costly for us,” Shealy said. “Despite that, we were working on a large transaction that would have been very good for us strategically, operationally and financially to put the company in a really good spot and be in a good sustainable position.”
Shealy declined to comment on the failed deal, which he said fell apart recently and motivated the WayForth board of directors to put into motion the restructuring plan last week in a bid to save the company.
“When that transaction failed to materialize, it just put us in a very difficult position financially, causing our board to make some very rapid decisions in terms of cost cutting,” he said.
In a company-wide memo sent to WayForth employees on Monday and obtained by BizSense, the company said: “We have been urgently seeking other partners for equity investment, strategic partnerships and other financing opportunities that would have allowed us to avoid this, but unfortunately none of that has come to fruition given the tight timelines. Our existing investors have declined to invest any additional growth capital.”
WayForth launched locally in 2016 as Legacy Navigator and later rebranded. Shealy and Pete Shrock founded the company alongside Matt Paxton, who has appeared on the A&E show “Hoarders” as an extreme-cleaning expert. Paxton is no longer involved in WayForth.
In 2020, WayForth placed second among BizSense’s RVA25, an annual roundup of the fastest-growing private companies in the Richmond region. The company grew over the years through a series of acquisitions and raised at least $32 million from investors, according to SEC filings.
WayForth’s facility at 2107 Loumour Ave. in Scott’s Addition.
The company is exiting markets in Massachusetts, North Carolina, Texas, Florida, Maryland, New Jersey, Pennsylvania and Connecticut in order to consolidate operations in the Richmond area. Its other Virginia locations in Norfolk, Ashburn and Lorton are also slated to close.
The memo stated that WayForth’s Richmond market was the company’s most profitable market this year.
All of WayForth’s out-of-town locations will stop offering moving services on Friday and will begin winding down. Among the tasks to be completed as part of that process will be returning items being held in storage for customers.
“After that point, we’ve advised clients to seek alternative providers,” Shealy said Tuesday.
Shealy said there isn’t a specific timeline to complete the restructuring. Some employees have already been laid off while others who are still employed to help with the wind-down will be let go as the restructuring unfolds.
WayForth has its local operations hub at 2107 Loumour Ave. in Scott’s Addition and a corporate office at 1518 Willow Lawn Drive.
Shealy said while there aren’t near-term plans to shutter the corporate office, he anticipated WayForth would move out of that space at some point as part of the restructuring. He said the company is still working out how the cuts would ultimately affect the corporate team, which has already seen some layoffs.
Asked whether the restructuring may involve the company going into bankruptcy, Shealy declined to comment.
Company also facing lawsuit
Amid the drawdown, WayForth was sued last week by the co-founders of a company it acquired several years ago.
The founders of senior-focused moving company Let’s Move filed a lawsuit in federal court seeking $1 million it says is still owed from the $3 million price WayForth paid to purchase the firm in 2019. Let’s Move was founded by Kimberly McMahon and Allison Pihl of Maryland. Both women became shareholders in WayForth as part of the deal.
Shealy declined to comment on the lawsuit, except to say it wasn’t a factor in the restructuring decision. Attorneys for Teamwork LLC, an entity owned by McMahon and Pihl that is the plaintiff in the case, didn’t respond to a request for comment about the suit.
The lawsuit claims WayForth paid an initial $2 million of the $3 million price tag when the deal closed in August 2019, but that it hasn’t paid the final $1 million “despite repeated demands.” That payment was due at the end of April, the suit states.
The lawsuit also gives a glimpse at WayForth’s financial state. It says the company’s gross revenues in 2022 through August of that year were about $14.8 million.
Despite the setbacks, Shealy said the company’s core customer base is still a viable market in need of the company’s services. WayForth provides moving, downsizing, packing and storage services and primarily caters to seniors.
“That population in need of that help is not going away. We have to go through a tough time to right ourselves,” he said.
They also received more than $30 million in funding around 2 years ago to fuel this growth. You did a story on this when they were trying to raise the money – https://richmondbizsense.com/2020/01/07/local-moving-and-estate-firm-aims-for-35m-capital-haul/
You can’t blame economics – this is a business model that should be thriving. This is poor management. WayForth is not to be trusted at all.
Definitely poor management. I feel sorry for the hundred of employees and FAMILIES who were notified 5 days before they were to lose their jobs. Wayforth management knew they were in trouble and left those families in the dark. The economy and employee market is fine. Wayforth Upper Management didnt always treat their employees well. That’s why Moyer is THRIVING with all of Wayforths former employees and Senior move market in the DMV area
And that is why a small business shouldn’t take on debt. Now they have to pay that $30 million back with interest. Or top line profit has to be siphoned off to pay the investors. Less Shark Tank and More stories about bootstrapping please.
I sold my Richmond business to this company 4 years ago, and it was thriving, healthy and profitable. The senior move management industry has been growing steadily for nearly two decades and many businesses doing this work around the country are having their best years in business – even post Covid. The industry is solid, we have dedicated professionals offering important services to our beloved clients, and we are here to stay and provide these much needed services. This is not a reflection of the industry, or the economy.
Well said!
You would know better than I, but it SEEMS like there may be a bit of an epidemic of larger trucking outfits declaring BK — I don’t know why, but in the larger business environment I know that some pretty big people should’ve locked in or hedged interest rates and did not and are suffering, and the most widely known problems have been banks who lent out a low interest rates locked in at below the rate of inflation and have trouble getting anything other than high loan rates themselves.
This reminds me of the Fabling Built implosion – a seemingly thriving business suddenly cratering.
This was wholly predictable from my viewpoint. A company that was very top-heavy with people with fancy titles in every line of business. Labor shortage? Well, when you advertise “full-time” jobs knowing that the people you hire will never get a full 40-hour work week, they figure it out fast. And leave. Constant turnover combined with little-to-no training. An unsustainable business model. I’m sure there are a host of reputable companies ready willing and able to fill the void. They sold one thing and delivered another, all on the backs of the few long-term employees who stayed because of their… Read more »
Also well stated. Tragic. Don’t even get me started.
I wonder why Richmond is its most profitable market? Does it have the most seniors who want to move? Or the most available labor? What?
Are these employees receiving any kind of severance? I’d love to see an update about their recent bankruptcy filing and the debts they’re attempting to weasel their way out of due to negligence and greed.
To answer your question: No severance package was offered. Most employees were let go same day. Wayforth put a “transition team” in place that consisted of current office employees (lowest paid) which ended up being more of a “clean up crew.”