Sewing and Craft Club

The Sewing and Craft Club is operated by Tacony Corporation Our Company manufactures and sells high end, custom built furniture for sewing rooms Our sewing studios are branded Koala and are made in West Chicago, Illinois The studios are not manufactured until an order is placed for them because the consumer selects the model, height, finish and a number of options when purchasing a studio MsC [redacted] ordered a studio on November 4, and when we confirmed her order on November 17th, she requested a delivery after the first of the year MsC [redacted] is correct when she states that we had difficulty placing her order We did not anticipate the difficulty we had On December 5, 2016, our Company switched to a new computer system that we had been told would make the placement and scheduling of Koala studio orders easier due to the software’s ability to be programmed to configure all the options that are possible for all the Koala models Using the new software, our associates entered hundreds of pending orders only to find that the orders all needed to be re-entered This put our order entry significantly behind schedule and for orders that included extended payments, like MsC***’s order, we experienced additional difficulty We recognize that ALL of these issues are ours; none of them are attributable to MsC*** We know that our service level in December was well below what we consider acceptable We regret the inconvenience this caused MsC [redacted] and other consumers MsC***’s complaint is essentially that we should have done more to keep her advised of the difficulties we have been experiencing The computer conversion extended to our entire operations and was not limited to our Koala business Despite the fact that we had been preparing for the conversion for more than years and had spent significant hours training our associates on the new system, we nevertheless found that our ability to conduct business as usual was adversely impacted On a daily basis, a new issue would surface or a new solution would be proposed, but in many areas, we did not have as definitive of information as we would like to have had We resorted to using third parties for phone service support and had a significant number of associates working extended hours throughout December and continuing into this month We literally were unable to make all the outbound calls to consumers that we wished we could have madeIn an effort to apologize to MsC [redacted] for our lack of timely information and our delay in delivery of her studio, we have moved her studio to the front of the production queue and sent her an assortment of Madeira’s 1,meter rayon thread which we hope she will enjoy using I have been advised that her studio is expected to ship no later than Friday If you need further information, please adviseAmy Hinderer TACONY CORPORATION Amy Rehm Hinderer | General CounselE: [email protected] P: ext| W: www.tacony.com

The Sewing and Craft Club is operated by Tacony Corporation. Our Company manufactures and sells high end, custom built furniture for sewing rooms. Our sewing studios are branded Koala and are made in West Chicago, Illinois. The studios are not manufactured until an order is placed
for them because the consumer selects the model, height, finish and a number of options when purchasing a studio. MsC*** ordered a studio on November 4, and when we confirmed her order on November 17th, she requested a delivery after the first of the year. MsC*** is correct when she states that we had difficulty placing her order. We did not anticipate the difficulty we had. On December 5, 2016, our Company switched to a new computer system that we had been told would make the placement and scheduling of Koala studio orders easier due to the software’s ability to be programmed to configure all the options that are possible for all the Koala models. Using the new software, our associates entered hundreds of pending orders only to find that the orders all needed to be re-entered. This put our order entry significantly behind schedule and for orders that included extended payments, like MsC***’s order, we experienced additional difficulty. We recognize that ALL of these issues are ours; none of them are attributable to MsC***. We know that our service level in December was well below what we consider acceptable. We regret the inconvenience this caused MsC*** and other consumers. MsC***’s complaint is essentially that we should have done more to keep her advised of the difficulties we have been experiencing. The computer conversion extended to our entire operations and was not limited to our Koala business. Despite the fact that we had been preparing for the conversion for more than years and had spent significant hours training our associates on the new system, we nevertheless found that our ability to conduct business as usual was adversely impacted. On a daily basis, a new issue would surface or a new solution would be proposed, but in many areas, we did not have as definitive of information as we would like to have had. We resorted to using third parties for phone service support and had a significant number of associates working extended hours throughout December and continuing into this month. We literally were unable to make all the outbound calls to consumers that we wished we could have made. In an effort to apologize to MsC*** for our lack of timely information and our delay in delivery of her studio, we have moved her studio to the front of the production queue and sent her an assortment of Madeira’s 1,meter rayon thread which we hope she will enjoy using I have been advised that her studio is expected to ship no later than Friday. If you need further information, please advise. Amy Hinderer TACONY CORPORATION Amy Rehm Hinderer | General CounselE: [email protected] P: ext| W: www.tacony.com

The Sewing and Craft Club is operated by Tacony Corporation.  Our Company manufactures and sells high end, custom built furniture for sewing rooms.  Our sewing studios are branded Koala and are made in West Chicago, Illinois.  The studios are not manufactured until an order is placed...

for them because the consumer selects the model, height, finish and a number of options when purchasing a studio.  Ms. C[redacted] ordered a studio on November 4, 2016 and when we confirmed her order on November 17th, she requested a delivery after the first of the year.     Ms. C[redacted] is correct when she states that we had difficulty placing her order.  We did not anticipate the difficulty we had.  On December 5, 2016, our Company switched to a new computer system that we had been told would make the placement and scheduling of Koala studio orders easier due to the software’s ability to be programmed to configure all the options that are possible for all the Koala models.  Using the new software, our associates entered hundreds of pending orders only to find that the orders all needed to be re-entered.  This put our order entry significantly behind schedule and for orders that included extended payments, like Ms. C[redacted]’s order, we experienced additional difficulty.  We recognize that ALL of these issues are ours; none of them are attributable to Ms. C[redacted].  We know that our service level in December was well below what we consider acceptable.  We regret the inconvenience this caused Ms. C[redacted] and other consumers.  Ms. C[redacted]’s complaint is essentially that we should have done more to keep her advised of the difficulties we have been experiencing.  The computer conversion extended to our entire operations and was not limited to our Koala business.  Despite the fact that we had been preparing for the conversion for more than 2 years and had spent significant hours training our associates on the new system, we nevertheless found that our ability to conduct business as usual was adversely impacted.  On a daily basis, a new issue would surface or a new solution would be proposed, but in many areas, we did not have as definitive of information as we would like to have had.  We resorted to using third parties for phone service support and had a significant number of associates working extended hours throughout December and continuing into this month.  We literally were unable to make all the outbound calls to consumers that we wished we could have made. In an effort to apologize to Ms. C[redacted] for our lack of timely information and our delay in delivery of her studio, we have moved her studio to the front of the production queue and sent her an assortment of Madeira’s 1,000 meter rayon thread which we hope she will enjoy using.   I have been advised that her studio is expected to ship no later than Friday.  If you need further information, please advise. Amy Hinderer TACONY CORPORATION Amy Rehm Hinderer | General CounselE: [email protected] P: 636.349.3000 ext. 1120 | W: www.tacony.com