Harbor Freight Tools is the go-to shop for auto enthusiasts that like to work on cars. With literally every tool under the sun available for “ridiculously low prices”, Harbor Freight has become a household name among people who still like to turn a wrench on their own cars.
The family-owned, father-son partnership than ran the company was also something that likely resonated with the shop’s target demographic, but lately it seems that things have been going south.
Morale is low among employees, and now, the founders of the company have accused their own son, the CEO of the company of “looting” from Harbor Freight’s cash reserves.
“I can personally attest to as why HFT has so many negative vents on here! It has become an awful place to work. Eric is no longer interested in selling quality tools. He’s into selling junk, membership cards and coupons. $29.99 to get more coupons for crap that isn’t in stock? No Thanx!”
It looks like Eric Smidt (the “Eric” in question in the above remark) has had his comeuppance, after his parents filed a lawsuit, complete with the “looting” accusation. Apparently, the younger Smidt bought a $20 million New York penthouse and a $100 million painting, among other frivolous expenditures. Eric also amassed $500 million in debt that the company is liable for, and spent it on multi-million dollar homes.
The family feud behind the Harbor Freight case makes it especially unpalatable to most decent people. The company employs about 7,400 people nationwide as well, meaning that if the company went under, a lot of people would be put out of work. We’ll keep following the case to ensure that your supply of cheap, Chinese made tools stays safe.
[Source: Ventura County Star]