Kendall Qualls’ running mate, picked for business acumen, owes workers money

Nicholson, who is the lieutenant governor running mate of Kendall Qualls, told the workers they would be furloughed, and that he’d find the money to pay them — for the first time since June 19 — as soon as possible.

Workers at Advanced Volumetric Alliance — some of whom have filed wage theft claims with the Minnesota Department of Labor and Industry — were left disappointed.

“We all live paycheck-to-paycheck,” Shannon Morey, who worked on Advanced Volumetric Alliance’s assembly line doing final touch ups and paint jobs, said in an interview. 

The company, which employs around 100 people and manufactures modular buildings, has ceased operations. Workers have not received pay for their work between June 19 and July 8, the date they were furloughed.

Qualls, who won the GOP endorsement at the spring convention, is running against MyPillow CEO Mike Lindell and House Speaker Lisa Demuth for the Republican nomination for governor in the Aug. 11 primary election.

Qualls and Nicholson have touted their business acumen as important preparation to be governor and lieutenant governor, arguing the government needs to run more like a business.

“Bringing some business leadership to government is sorely missing,” Nicholson said on a local podcast in March.

In a statement, Nicholson confirmed he furloughed his employees and said that a deal Advanced Volumetric Alliance was working on for the past year “fell apart at the last minute.”

“At times, I personally covered payroll out of my own pocket because I refused to let my employees down. This is a terrible situation but furloughing our employees was the best move for them while we work toward a solution,” Nicholson said. “Under Minnesota Democrats, too many businesses are facing similar situations and I’m running with Kendall Qualls to ensure our businesses can thrive.”

The Reformer recently asked Qualls whether he was aware employees at one of Nicholson’s companies have not received the wages they were owed. Qualls said this situation was “normative behavior in the business economic cycle.”

“A lot of businesses, even the ones I was involved in … go through peaks and valleys. We need leaders that can take companies through those peaks and valleys. And if he’s going through a valley right now, he’s the kind of guy that would bring it back to a peak,” Qualls said.

A previous furlough

The July furlough isn’t the first example of financial problems at Advanced Volumetric Alliance, however. The company furloughed some of its workers back in April, and many workers received their paychecks a week late, according to an email from Nicholson obtained by the Reformer.

Nicholson in an April 10 email said the tardy pay was “a timing issue of inbound cash.”

When Nicholson informed his workers that they would finally receive their paycheck a week late, he assured them that the company’s future was bright.

“This week, I was traveling and presenting AVA and its capabilities to the Dept of War to help solve the problem of barracks quality for our armed forces,” Nicholson said in an email sent out to employees on April 17.

“Both President Trump and Secretary (Pete) Hegseth have described the soldier housing problem as one of national security … The prototype projects are the tip of the iceberg — when we’re successful with those, then we have the ability to become part of the bigger solution worldwide.”

The government contract hasn’t come to fruition.

Nicholson has said he’s been involved in starting dozens of companies throughout this career. Vendors have occasionally sued him for lack of payment.

Minnetonka-based KLC Financial sued Advanced Volumetric Alliance this month for $637,000, according to Minnesota court records. KLC Financial financed equipment for the company, and the bank said Nicholson’s company has failed to make monthly payments on the loan.

Nicholson has also been accused of financial misconduct by a former chief financial officer, who alleged that Nicholson and his business partner used company funds for personal expenses. Brian McCaw, the former CFO, also alleges that Nicholson’s company “was over-leveraged, failing to pay vendors on a timely basis, and was not providing timely or sufficient communications to the company’s investors.”

In May, a court ruled that two companies closely associated with Nicholson owed $77,000 to an insulation contractor that never got paid.

Advanced Volumetric Alliance is housed in a new 180,000 square-foot facility in Albertville, a black warehouse visible off of I-94.

Morey, the line worker, said in an interview she was excited to start working at Advanced Volumetric Alliance because it offered training, holiday pay, a good hourly wage and a four-day workweek.

The furlough earlier this month and the company’s inability to pay them their final paycheck has hurt many working-class employees who have rent and mortgages to pay, Morey said.

She’s been frustrated by the lack of communication from Advanced Volumetric Alliance executives, and she probably would not return if the company did finally have enough cash to pay them and end their furlough.

“There are a lot of people in AVA that are negative in their accounts and are not okay,” Morey said. “I just want them to be held accountable.”