From Plaza Design's Facebook pageUPDATE March 5: Woodworkers, artists and others who left consignment goods at Plaza Design will get their unsold pieces back, Ross Welch, executive director of the Arcata Economic Development Corp., said Monday. What about people with gift certificates, or those who made deposits on furniture they ordered? “I don’t know yet,” Welch said.

ORIGINAL POST: Customers and sales personnel were escorted out of Plaza Design in Arcata on Thursday and the locks were changed, according to store manager Patricia “Perta” Sennott.

The abrupt action came on a sunny afternoon, when the store was full of customers, some trying to spend gift certificates or store credits after hearing that the longtime Arcata business would be closing soon.

Soon came far more swiftly than Sennott had expected.

Two people who said they were with the Arcata Economic Development Corporation brought a locksmith with them, she said. They asked customers to leave, and asked employees to answer a few questions before leaving.

The lender had no comment on Friday, according to office manager Keif Chavera.

“It was kind of scary for us,” Sennott said over the phone on Friday. “I realize they were just doing their jobs, but it was kind of upsetting. They said all the property there belonged to AEDC now. … I guess Plaza Design had a big loan out with AEDC.”

Sennott, who had worked for Plaza Design for 18 years, said she worried about customers who had put money down on furniture that was being shipped, and about woodworkers and artists who had pieces on consignment at the store. Then there were the gift certificates. In the past few days, with the store in turmoil, Sennott had told numerous people that there would be time to use them.

“They’re going to think I lied to them,” she said, then paused. “I mean, they won’t. But it’s going to be awkward around town.”

 

 

Carrie Peyton Dahlberg was editor of the North Coast Journal from June 2011 to November 2013.

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65 Comments

  1. The elephant in the room is the incompetent owners who drove a well-established business, which had survived all previous economic downturns, into the ground in, what, five years?

    I worked with one of them. An unreliable, unprofessional jerk who seemed to think they could say anything that was expedient at the moment, felt no obligation to keep their word and therefore blithely wasted a lot of my time. Staff, on the other hand, stayed awesome to the end and absolutely deserve better than this.

  2. Until the Arcata Economic Development Corporation plunges an entire continent into war and kills 6 million innocent people, please don’t call them Nazis.

  3. That’s quite an assumption Anon @ 7:32. I’m inclined to guess (just as you are making a guess) that the economy tanked (by some measures, a depression, not a recession) well before 5 years ago and the previous owner had good reason to sell the stores… I chalk this up to… it’s a bad time to be going into business, particularly a business that sells upscale goods in a low income county.

  4. Until the First Amendment is repealed, please refrain from dictating what people can and can’t say.
    On topic, the Arcata Econimic Development Corporation could have chosen a better way to take matters into their own hands, rather than barging into the store and barking orders like a bunch of hitlers.

  5. Vegancat, no one has even remotely come close to trying to dictate what people and cannot say. Except me. Right now. Your equating AEDC with the world’s most notorious mass murderer marks you as a rather obvious troll. Please, go away. Just go away and troll some other blog.

    Google the phrase “Godwin’s law” and then look in the mirror and be ashamed of yourself.

  6. Anon @ 7:32 is exactly correct. I sold wood art to the new owners when they first bought the business. They seemed nice but on their very first order they got three months behind. This was in a great economic time. I cut them off immediately and have been better off for it. I am totally unsuprised that they are out of business.

    The bigger story here is not Plaza Design per say but AEDC and their absurd lending practices. They grab Headwaters money and loan it out to whoever will sign on the dotted line. They do no do dilligence to protect the publics money and have huge losses hidden in their cooked books to show for it but collect big fees to support their inflated overhead. Be nice if someone investigated the fleecing of the Headwaters Fund by AEDC.

  7. @anon. Check out the Grand Jury report that came out recently in the T-S. Headwaters gets dinged for a number of things that didn’t happen as they said would.

  8. AEDC and Plaza Design are both good organizations with long community histories. Good people work for both businesses. There are so many details of these transactions that won’t be public. No one ever wants business to go this way.

  9. Did that first lame anonymous blogger actually refer to AEDC folks as Nazis?

    Nazis… everywhere.

  10. “Too bad it ended so ugly
    Too bad she had to go this way.”
    ——–Louise by Leo Kottke

  11. I think people can freely use the words “nazi” and or “Hitler” if that is their opinion. I mean you don’t think that is rather DRASTIC and Gustapo like? You people need to realize that this is the kind of thing that started in WW11 before people had a chance to realize what was happening. Then it was too late. This is bs and I have over 2000 worth of inventory consigned in this store I had no idea. So what do I do now?

  12. No, we don’t think an organization graciously giving a business a loan and then, (presumably, we really must assume) when the business can’t keep up with repaying the money it owes, and the lender seizes the available assets to recoup some of the money it has lost…. is anything remotely like dragging people out in the middle of the night to murder them. Please, Lola (and your other nicknames), please, just go away. You are not in touch with reality. Please, seek medical treatment before you harm yourself or others.

  13. Lola should study history before she tries to use it for vulgar rhetorical purposes. She would benefit from a logic class as well.

  14. Lola, comparing AEDC to Hitler….it just doesn’t work and is offensive on so many levels.

    While I think that tactics that were used are obviously very heavy-handed, we don’t know all the details yet, and it remains to be seen whether all consignment items will be returned to the artists.

    But getting your consignments items back compared to being separated from your family, worked until you are just about dead, then being gassed to death…..and doing it 6 million times…..maybe you should rethink things a little.

  15. A history lesson for vegandog.

    The Nazis were Nazis before they began making war on other nations or committing genocide. Long before any of that, the got their start by committing acts of thuggery, like the AEDC did yesterday. But they were still called Nazis.

    If the people at AEDC don’t want to be compared to Nazis they shouldn’t act like Nazis.

  16. So Anon…..you are concerned that the legacy left behind by AEDC will be millions and millions left dead?

    Hmmmmmmm, I better re-think this myself.

  17. Can someone from AEDC explain why it was handled this way? Why not wait a few more hours until closing time, then show up with a locksmith? You have to admit, it was exercising poor judgment to show up in the middle of the day when customers were in the store, many of whom were trying to get value for what is owed to them. It just doesn’t look good for the AEDC, and leaves one asking, “what were you thinking?”

  18. I know my history, and I didn’t use the word Nazi or Hitler. You should probably learn more about the Nazi’s and WW11 and then you might realize that there was a lot more that happened BEFORE millions were killed, that was only the last 2 or 3 years of the war, most being killed in the last year. So yeh, I know my history.

    The SS killed more people than just “Nazi’s” and Himmler killed many more than Hitler.

    Why am I arguing with ignorant idiots. I am not a racist or a Nazi all I said is people are allowed to use that term if they feel something is like that and them going in on a business day, in the middle of people shopping was pretty creepy and controlling.

    The only name I’ve used on here is LOLA and please explain why I would need to seek medical treatment? Sounds like SIGH is the one with serious issues if you can’t handle people using a word. You are ignorant. It is that simple and your run on sentences don’t even make sense maybe you should take an english class dummy.

    Plaza Design should have warned their consigners, hopefully it will all work out. I never said AEDC didn’t have a right to take the store over, the way they did it was extremely unprofessional.

    Calling people like you are hippie would be a compliment. You are scum and obviously have NO IDEA how business works but that’s probably because you live off mommy and daddy’s money. GO HOME.

  19. I meant “Calling people like you A HIPPIE”

    Typo, sorry.

    Everyone KNOWS what the Nazi’s did in WW11 was horrible, where the hell do you get the idea that if someone uses a WORD they are some kind of freak. I think the whole point is to look for SIGNS so that genocide on that level NEVER happens again and if you can’t see that this country is headed there you are not even worth my time.

    Get a clue, look around you. Letting the government and people with money have too much control is the start of many bad things. How can you be so BLIND?

  20. Who the hell said I compared them to Hitler??? I DIDN’T!!!

    That right there just proves I’m right. Being blamed for something someone else did.

    People who automatically cry over a word, when maybe others are trying to warn them that these kinds of actions COULD LEAD to bad things is so ridiculous.

    There were and have been many other examples of genocide other than the Nazi’s also. The point is to learn from the past when this has happened and try to learn how not to let people have power and control over others and do all we can to PREVENT it from ever happening again. Otherwise what did all of those innocent people die for if not to help us understand how NOT to EVER get in a situation like that. But why would I care? I must just be some evil person, when I didn’t even use the term Hitler. My God people WAKE UP.

  21. I will ramble on…

    The staff AND the consigners deserved WAY better than this and I am sad Plaza Design went out this way. I loved that store. I didn’t realize there were new owners though I did notice a big change in the last 5 years…

  22. I will ramble on…

    The staff AND the consigners deserved WAY better than this and I am sad Plaza Design went out this way. I loved that store. I didn’t realize there were new owners though I did notice a big change in the last 5 years…

  23. Personally I think you are all hysterical. Freedom of Speech… but don’t say this word or that….. Arrogance…. who knows who needs a history lesson and who are you to give it. Things like this remind me of small town versions of “did Whitney put her head in the water and breathe or did she do too many drugs”. I think I’ll go to the library to do my reading, this is worse than the tabloids

  24. Lola is so steeped in history, perhaps she can explain to us what WW11 is. Were there nine world wars we don’t know about?

  25. Oh so sorry I should have typed WWII, get a life. And I agree it is pretty pathetic, this town is full of bums and spoiled brats. Buzz you super cool, kinda sad that that’s all you got out of anything. None of you could give two craps about your own community or where this country is headed, or THE POINT that it is NOT OK to walk into a store during business hours and kick people out and change locks. Just a bunch of immature haters. GROW UP

  26. This is why I’m moving, enough said. People like this have ruined this community. “Like, go smoke some more weed dude, yeh Humboldt…”, typing WW11 because I have kids and was in a hurry to write something down. If you are stupid enough to pretend that means ELEVEN go back to the stinky hole you crawled out of 😛

  27. I’m sure BUZZ is one of the retards that thinks that since pedestrians have the right away you don’t have to watch out for cars. You are a brain surgeon, I don’t see you giving a crap about this town or the people in this country. You just run your mouth on a blog. WOW.

  28. Happy to hear that you’re going to bless some other locale with your expertise in history.

  29. All you have added to anything on here is just insults. You are a real asset to this community. Get a life.

  30. Yeh and I’m sure you JUST moved here, I would bet money on it. Real locals hate people like you.

  31. I’m done go back to 3rd grade and quit wasting people’s time and the oxygen in Humboldt

  32. That was an accident. Oops. Nice to know you are working for this blog though 🙂

  33. I was trying to write it to Buzz and got in a hurry. I always liked cats better than dogs

  34. I didn’t know Hitler’s first move was to lock down stores that you could buy overpriced local goods at.

    History you failed me again!

  35. Does this mean I wont be getting my furniture I had on order and fully paid for? I called the store a week ago, was told it was en route, called again yesrerday, phones were off, and now I see this…..
    Where did the special-order, fully paid inventory go? Anyone know the owners names?

  36. Here’s a start:

    AEDC apparently owns it now, or at least legally controls it:

    Ross Welch, Executive Director
    Ext. 11; ross@aedc1.org

    Kelli Denney, Loan Manager
    Ext. 14; kellid@aedc1.org

    Jayne Lovig, Loan Analyst
    Ext. 17; jayne@aedc1.org

    Tony Rodrigues, Loan Servicing
    Ext. 16; tony@aedc1.org

    Keif Chavera, Office Manager
    Ext. 10; keif@aedc1.org

    Teri Paterson, Controller
    Ext. 13; teri@aedc1.org

    Susan Seaman, Program Director
    Ext. 12, susans@aedc1.org

    Madelin Holtkamp, Business Development
    Tel: (707) 462-2899, madelin@aedc1.org

  37. Somehow there is a “shop local” joke in here somewhere, but I’m not going to work for it.

  38. NO, wasn’t trying to take over the blog. Just annoyed with people being such jerks. But it’s fine, I know where I stand.

    Anyways back on the topic of Plaza Design get a hold of Susan at the AEDC if you are a consigner, or maybe even with the furniture situation, you should call. She seems to be very willing to talk to people and I am going to be able to get my goods back that haven’t sold. They are also going over the books so I hope that those who have put money down on furniture will get a refund and HOPEFULLY people who were consigning get some of theirs too. I liked Plaza Design and it’s sad it had to go this way.

    I don’t understand how talking about history makes someone a “nazi” but ok. So it’s ok for people to call me a “nazi” or refer to me as “hitler”? This just proves people are insane.

    Funny how Jerry Seinfeld is Jewish and used the term “soup nazi” on his show so is he like Hitler too? You people take things way too seriously and no Buzz I’m not stupid, I have more things going on than being on the internet so I accidentally typed in your name because I was trying to write to you and I have kids and had dinner on the stove.

  39. Well, since you also used “retard” in the pejorative, your rhetorical driving license outta be revoked. But it won’t. Keep yammering, for all I care.

    Jerry Seinfeld used Nazi. Jerry Seinfeld is funny. You haven’t been yet in the 40-odd paragraphs of anonymous blog postage.

    Glad to learn Susan is a friendly Nazi.

  40. I never called anyone at the AEDC a NAZI!!! WTF IS WRONG WITH YOU PEOPLE??? But you can call me a Nazi?

    Ok so people can use the word Nazi if it’s funny? Since I didn’t USE THAT WORD referring to them in the first place, whoever did WAS BEING FUNNY.

    Wow, I wish I was as politically correct as these hypocrites.

    Now I will go on to say that people who throw a fit over the word Nazi, which I DIDN’T USE to describe anyone, and then call ME a Nazi or Hitler are obviously MENTAL. Oops sorry not PC.

    Yeh, this shit is hilarious but you are too anal to realize it.

    Liberals like this will argue with anything, even to the point of hypocrisy and that, my friend, is the funniest thing I’ve seen in a while.

    I got attacked for saying people are allowed to use words. I thought liberals were AGAINST Big Brother? Pretty much libs are against anything as long as they can argue even if it doesn’t make any sense.

    I called no one a Nazi yet I’m being called Hitler AND a Nazi.

    And yes, if you walk in front of cars you are retarded. It makes me a good driver that I PAY ATTENTION and don’t run into the idiots that obviously want to get run over. I’m done you can’t argue with people who don’t understand 1 plus 1 does and always will equal 2.

    Oh I’m sorry, only you guys can pick on someone for not even doing anything wrong. I wouldn’t be rambling if you didn’t go off on me for saying people can have free speech. But apparently only you people are allowed to.

  41. Dont you need a court order or the Sherriff to take over someones property and change the locks? Seems like a poorly handled approach unless they had that and its just not reported. Owners could come back and sue.

  42. AEDC is in the business of loaning money. When you apply for an AEDC loan you submit a business plan, do projections, personally guarantee the loan with property and/or your inventory. It is not a simple blank check that anyone can just show up and get. You agree to repay the loan and if you can’t repay the loan there are quite a few ways to avoid AEDC taking over your store. That is a last-ditch effort reserved for situations where the business owner has repeatedly failed to make their obligations.

    If AEDC is changing your locks you can assume the following: You are more than 90 days behind on your loan, you have avoided their loan officer and you have not met their fairly simple obligations to qualify for a forbearance or interest-only loan term.

    For those of you who are sure the owners can sue, AEDC did the wrong thing etc, did you read the loan agreement? Did you see the 30,60,90 day letters AEDC provided?

    Bottom line: The owners borrowed money and could not repay. AEDC is obligated to close the business, auction off the inventory owned by Plaza design (and return the consignment items) in an attempt to fulfill AEDC obligations to repay both Headwaters and SBA loans that were bundled for Plaza Design.

    A family member of mine has an AEDC loan. They are easy to work with and not much different than a bank if you fall slightly behind. They understand tough economic times, however if you start selling off your inventory and you are not paying them, they will exercise their rights to shut the doors. Just like any bank (local or international)

    If a Nazi is someone who lends you money then wants you to repay it according to the agreement you made, I guess you have a different definition of a Nazi than I keep.

  43. Simpleton,

    Seizure or forfeiture of real property is not as easy as you are saying, and not helpful in trying to alleviate. The AEDC would have to enlist a Sherriff or other law enforcer, they cannot go RAMBO and change their locks on their own accord based on 90 day delinquency.

  44. Do you know what really happened? Was it only 90 days or was it 120… was it 180? What did the owners promise, what did they offer AEDC and fail to deliver? Did they make a grand bargain? Do you know for certain that no papers were served on the owners of Plaza Design? I don’t know and neither do the people who are accusing AEDC of being jackboot thugs or going RAMBO.

    I suspect they have legal counsel and do not make moves like this without consulting their board of directors and legal advisers.

    Did you read the fine print of their loan documents? Perhaps it is easier than you think. Perhaps they were served with court papers.

    Also, why after several days has a court order not been issued to stay the lockout? You’d think if law was on the side of the business owners that would have happened by now.

    A lot of questions haven’t been answered by the owners of Plaza Design or AEDC. Simpletons believe they know what was right and wrong without any background. Perhaps there is much, much more to the story that you, me and the NCJ can begin to understand with the limited information both sides have provided.

    If you don’t make car payments they can come in the middle of the night and take your car from your driveway while you sleep.

  45. Lola defended (March 3, 11:10 a.m.) the use of the terms Nazi and Hitler, and then likened AEDC to the Gustapo and suggested the incident bore similarities to pre-WWII run-up activities. So, yeah Lola, maybe you got confused about which name you were posting under if you’re now going to deny violating Godwin’s Law on March 5 at 4:10 p.m.

  46. Yes, but Lola is cooking and texting and screaming at her kids while blessing us with her trenchant analyses.

    And she didn’t violate Godwin’s law, au contraire, she contributed to its credibility through direct action.

  47. Excuse me? Cooking and texting and screaming at my kids? Who the hell do you think you are? You don’t even KNOW me so yeh AA go back to AA you obviously need it.

    “I think people can freely use the words ‘nazi’ and or ‘Hitler’ if that is their opinion.”

    I said that because I believe people can use those words if that is how they feel. I didn’t say I agreed I just thought it was rather crazy to do that during business hours, end of story.

    As far as Gowin’s law goes, ummm hello did you not read all of the other posts by others BEFORE AND AFTER me about that topic?

    Ding Dong you are one since you think I denied violating that Godwin’s law BS. I simply said I did not call anyone Hitler or a Nazi.

    I would contribute more to this discussion about the information I have on the Plaza Design situation, since I was in there today but I will choose not to because I have to go “scream at my kids”.

    I am the strongest and most beautiful woman any of you have ever had the pleasure of being in the company of and I’m sorry that my whit threatens you. I have been through hell and back in my life and I’m not going to take any shit from a bunch of bums.

  48. typo, again, sorry. I run various online business and sometimes I type too fast.

    If you want to have an intelligent debate I’ll give you my number, I’m always up for it.

    The reason I said people should be allowed to use those words is I believe in freedom of speech. However, that doesn’t mean that the things people say won’t have consequences I just think people should be allowed to speak what’s on their mind.

    I understand how stupid people can get a little lost trying to read something actually intelligent it’s ok.

  49. Go brush your teeth you stink, oh yeh deodorant too, and I don’t “text” this shit, it’s called a Macbook Pro not a DROID derp.

  50. I also would like to say, in my own defense, perhaps jumping to a conclusion of things being “Gestapo” like was a little uncalled for. I was just appalled at that happening in the middle of store hours. I should have gotten more information before making a statement like that.

  51. Thank you Lola, for your four consecutive posts. Mazel tov on being “the strongest and most beautiful woman [we’ve] ever had the pleasure of being in the company of.”

    I prefer intelligence, talent and wisdom in women, but suum cuique pulchrum est.

  52. Personally, I think people should be allowed to call anyone a Nazi for any reason at all, but only on Tuesdays, Thursdays, and Saturdays.

  53. Yet another insightful discussion brought to you by Humboldt County & internet anonimity. For me this is always a treasured part of reading NCJ articles! And now, back to craigslist rants & raves…

  54. Since none of us know the private information the AEDC is not allowed by law to share, I would like to express a huge thank you to the AEDC for helping me obtain my purchased items. I first contacted the AEDC on Monday inquiring as to whether I would recieve the furniture I paid for-my calls were returned first thing Tuesday morning. I was told that AEDC needed a few weeks to sort out paperwork, etc, but that someone would contact me. I was contacted this morning by AEDC indicating my furniture had been located and a time was scheduled by AEDC for my husband to pick up our furniture.
    My husband and his friend who was helping load our furniture had two people make shitty comments to them as they loaded OUR merchandise out of the PD Arcata store. Clearly people are angry and if they have been ripped off by Plaza Design, rightfully so! My point here is the two comments made were by people who have NO IDEA what is really going on with the situation……
    I would like to thank the AEDC, especially Susan and Terry, for resolving my personal issue with Plaza Design in getting me my fully paid for merchandise in less than one week of me contacting them. Thank you, AEDC!

  55. Arcata Eye, March 7, 2012

    AEDC Secures Plaza Design, Contacts Creditors

    “Susan Seaman said the action was taken to protect creditors, including customers who may have paid for items as well as artists, craftspeople and others who had items there on consignment. Seaman said AEDC was now attempting to contact the numerous creditors consignees, beginning with those who had called the organization asking if they were going to get what they were owed, or their property back.
    “We haven’t been able to put together what’s been sold,” Seaman said. “We’re scheduling times to meet people there and make sure they get back their stuff.”

    So says the Arcata Eye article….

    In a phone call to Seaman yesterday she told me I would have to contact Peter Labes, Plaza Design owner to get paid my calenders which have sold. Labes has an unlisted phone number and the PD’s Umqua Bank account has no funds. Where did that money go?! If it is in the hands of AEDC, then they should pay up. Several hundred dollars of that money is mine. I’m wondering if I could have cashed those checks if the AEDC had not abruptly shut down PD in the manor they did. Neither party is owning up to the responsibility of compensating the artists for money they lost. For me it is like deja vu all over again. This time last year I was dealing with the money I lost in the Borders Bankruptcy which went nowhere.

    What I would like to know is who and how many other artists were screwed out of the money owed to them. I’m interested to find out and to talk about what we can do about it….

    Sam Camp

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