Ethan Allen closing three factories
By Furniture Today Staff -- Furniture Today, February 23, 2003
Danbury, Conn. — Retailer and manufacturer Ethan Allen will close three of its smaller, older domestic factories, moving most of their production to its 14 remaining U.S. plants.
The company will close its upholstery plant in Dudley, Mass., and case goods plants in Mayville, N.Y., and Union City, Pa., in about 60 days, shedding about 584 employees and 554,300 square feet of manufacturing space. Other U.S. plants will absorb about 75% of the production.
Ethan Allen will take an after-tax, mostly non-cash restructuring and impairment charge of between $7.5 million and $9 million, or 20 to 23 cents per share, mostly in its third quarter ending March 31.
"This will allow us to focus on manufacturing our products in the most suitable plants, in the United States or overseas," said Farooq Kathwari, Ethan Allen chairman and chief executive officer. "Over the last several years, we have made substantial investments to expand capacity and increase efficiency in our major manufacturing facilities."
Vertically integrated Ethan Allen has a network of more than 300 stores in the United States, Canada, Mexico and overseas. Last year it closed a factory in Randolph, Vt., and a lumber operation in Orleans, Vt.
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