Pirch files layoff notice after abruptly closing stores and ghosting customers

Pirch, the shuttered Carlsbad-based luxury retailer that operated about a half-dozen showrooms throughout Southern California until last month, is laying off 40 employees, according to Worker Adjustment and Retraining Notification (WARN) notices filed this week with the state Employment Development Department.

The company filed notices on April 4 for four locations. One is its showroom at Westfield UTC, with 23 layoffs. The others are in Mission Viejo and Laguna Niguel, with 17 layoffs among them.

Other Pirch locations, including the corporate offices in Carlsbad, are not included in these filings.

Employers that must file WARN notices are typically required to give 30- or 60-days notice for layoffs, a time frame that is intended to give impacted workers time to plan.

In Pirch’s situation, layoff notices were filed and effective on the same date — April 4 — an abruptness that mirrors the sudden shuttering of all its stores across Southern California in March.

Civil lawsuits and other complaints

In parallel, Pirch is the subject of more than a dozen civil suits filed in recent weeks by its landlords, customers and at least one merchant.

In Orange County, 11 suits were filed between Feb. 28 and as recently as Tuesday. The February case is an eviction and the latest is a breach of contract. One customer, Marshall Krupp, sued Pirch claiming breach of contract or warranty. In an email to Pirch’s CEO, Steve Smith, and to its leadership team — shared with the San Diego Union-Tribune — Krupp wrote that he bought almost $50,000 appliances at the Costa Mesa store, which he said were never delivered. He was then stonewalled when he asked for a refund or information, he wrote.

In Krupp’s suit, Pirch is a co-defendant alongside its corporate parent, private equity company L Catterton.

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Three of Pirch’s landlords have filed eviction notices since December and one supplier sued for breach of contract.

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In other cases, Pirch is named alongside individuals who appear to have been Pirch sales associates, according to their online profiles.

Other consumers are looking for recourse through the criminal justice system.

Sandra Freiwald and her husband bought more than $43,000 in goods from Pirch in late February. The company has not replied to phone messages and sent only automated replies to their multiple queries, she said Friday.

Freiwald initiated a credit card chargeback, which is marked as “under review.” She has also submitted a complaint with the San Diego County District Attorney’s Economic Crimes division and got a response that the office will investigate, she said.

A spokesperson for the DA declined to confirm whether or not it is investigating Pirch.

Staff writer Natallie Rocha contributed to this report.

The Union-Tribune is looking to interview current or former employees of Pirch. If you’d be willing to talk with a reporter, email roxana.popescu@sduniontribune.com.