Ethan Allen to close Calif. plant, add jobs in N.C
By Furniture Today Staff -- Furniture Today, June 8, 2009
DANBURY, Conn. — Manufacturer and retailer Ethan Allen announced it will close an upholstery factory on Chino, Calif., and transfer the production to its Maiden, N.C., plant.
The move will result in the loss of 202 jobs at the Chino plant, but the company said 302 jobs will be added to the North Carolina facility during the next three years.
The North Carolina factory currently has 540 employees.
“Our plan to expand upholstery operations in Maiden, where we have been operating since 1949, will start immediately,” said Farooq Kathwari, chairman and CEO. “We are pleased that the state and local governmental authorities in North Carolina worked with us in this transition.”
He said the Chino factory is the company's only leased manufacturing site, and its lease will expire in seven months.
Kathwari said the company will incur pretax charges of $2.7 million to $3.1 million in connection with the factory closing, and said most of the charges will be recorded in the current quarter, which ends June 30.
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