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PeopLoungers plant to make stationary

By Larry Thomas -- Furniture Today, March 16, 2003

Motion upholstery major PeopLoungers has acquired a 180,000-square-foot factory in nearby Mantachie to accommodate its growing stationary upholstery business.

The plant, last occupied by the now-defunct Kensington Furniture, will soon become the site of all the company's stationary upholstery production, said Jerry Marlin, executive vice president of merchandising.

Marlin said stationary upholstery currently is being produced in a 30,000-square-foot section of the company's main plant in Nettleton. Once the new plant is in operation, that space will be used to expand production of recliners, another fast-growing category.

"We've been very fortunate to be able to grow our business during a period when some people are struggling," Marlin said. "Our stationary business has done very well since we rolled out the program last year."

He said PeopLoungers opted to purchase the plant rather than expand its 550,000-square-foot facility in Nettleton because the Mantachie facility, built in 1989, could be in full production in a matter of weeks.

"And we feel like there is a high-quality, well-trained workforce in that area," Marlin added.

PeopLoungers President Jimmy Green said about 150 people will be hired to operate the Mantachie plant. The company now has about 700 employees in Nettleton, which is about 20 miles away.

"This purchase will allow us to meet and exceed our customers' needs for current business and future growth," Green said. "We are committed to offering our customers fashion, design and quality at a great value to the consumer."

The plant had been on the market since late 2001, when Kensington ceased operations. Kensington filed for Chapter 11 bankruptcy protection in July 2001, but went out of business after it was unable to reorganize.

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