May 28, 2024
EverLast Lighting to Shut Down Operations
After 22 years, Michigan lighting maker will close its doors on June 1
EverLast Lighting, a lighting manufacturer based in Jackson, Michigan, has announced its decision to cease operations effective June 1, 2024. The company has been a player in the lighting industry for 22 years, specializing in a wide range of markets, including industrial, commercial, warehouse, and educational sectors.
On May 16, EverLast Lighting informed its business partners of the impending shutdown through a letter. The announcement emphasized the company's commitment to transparency and support for its partners during the transition. The letter detailed the company's plan to pay all outstanding commissions to agents on completed and paid sales.
The shutdown comes with a transition plan
To aid with continuity and support for its customers, EverLast explained that it has selected Averlite to take over its operations. Averlite is an Indianapolis-based company that specializes in commercial and industrial lighting. The company website features about a dozen product families of LED troffers/panels, high bays, wall packs, and area lights. According to EverLast, the transition plan includes Averlite continuing the manufacturing of EverLast's existing products without changes to product specifications.
Averlite is reportedly reaching out to EverLast’s business partners aiming to facilitate a smooth transition. The company aims to take over pending orders and ensure continuity of product supply. EverLast has transferred its inventory to Averlite and established links with its component suppliers to aid the fulfillment of outstanding orders.
Ongoing litigation
Meanwhile, EverLast Lighting continues to be embroiled in litigation with a former lighting agent. It is unclear how the shutdown will affect the company's solvency and ability to continue in the litigation or pay any civil penalties if required to do so.
In the ongoing lawsuit, Simply Bright Ideas, a Missouri-based lighting agency, has accused EverLast Lighting of violating several sales representative agreements over the years. The lawsuit, filed in August 2023, alleges multiple breaches in contracts from 2017 through 2023. Simply Bright Ideas emphasized multiple grievances in its claims, highlighting that EverLast allegedly failed to pay agreed commissions and breached territorial exclusivity provisions. EverLast Lighting denies the agent's allegations.
Completion of discovery is scheduled for May 30, 2024, with a settlement conference set for January 15, 2025, and a trial date of February 25, 2025.
Addressing Concerns and Ensuring Continuity
In a follow-up memo to agents, EverLast Lighting addressed concerns and questions from agencies regarding the shutdown. The company acknowledged the handling of open orders, stating that all open orders with EverLast will be completed by Averlite within two to three weeks, utilizing EverLast’s existing stock and supplier connections. Warranty claims and future orders will be managed by Averlite.
The company advised that business partners and customers can reach out to Averlite’s customer service for any inquiries or support related to open orders, warranty claims, and future collaborations.
