June 7, 2023
Pathway Lighting to Cease Operations
Closure set for end of week, company assets to be auctioned off subsequently
Pathway Lighting Products will cease operations on June 9, 2023, marking the end of a challenging period for the company. The Connecticut company has been a manufacturer of downlights, wall washers, adjustable accents, decorative pendants, round and square cylinders, and emergency egress fixtures.
In a company announcement sent to business partners today, company President Jill Coan explained that the past several years have been marred by economic difficulties, the impact of COVID-19, and the loss of their founder, Fred Stark. Despite efforts to recover from these setbacks and restore profitability, the company believes it is no longer feasible to continue its operations.
In light of this decision, Pathway Lighting Products will be liquidating its assets, including inventory and equipment. To facilitate this process, the company is planning a public auction. The company has two secured creditors, one of which is the Small Business Administration (SBA). According to Coan, creditors will be paid in accordance with the order of priority as prescribed by the law.
Money owed to Agents and other Creditors
In last week's "5 Things to Know" column, we mentioned the imminent shutdown of an Eastern U.S. lighting brand. We were waiting for certain verifications before publicizing the news. We've heard reports over the last week of numerous agents who claim to be owed tens of thousands of dollars by Pathway Lighting. One agent cited a six-figure amount. Based on the company's stance, "Creditors will be paid in the order of priority under the law," it's quite possible that the asset bucket will be empty by the time agent commissions rise to the top of the priority list.
Pathway Lighting Products stated, "We want to recognize and thank our sales representatives, vendors, and employees, many of whom have been with us for many years, for their service and loyalty to the Company. We apologize for these unfortunate circumstances."
Our three voice and text messages to company president, Jill Coan, over the last week were not returned.