Bernhardt to cease operations at Plant 2
Will rely on imports for residential line
Powell Slaughter -- Furniture Today, March 9, 2005
LENOIR, N.C. -- High-end manufacturer and importer Bernhardt will cease manufacturing at its 350,000-square-foot Plant 2 case goods facility here within the next 60 days.
The move essentially takes Bernhardt out of domestic manufacturing for residential case goods. Plant 2 will convert to a warehousing, product development and quality control center.
Just over 200 employees will lose their jobs, with another 30 to 50 staying on to work in the reorganized facility.
CEO Alex Bernhardt notified the employees in both a personal meeting and a memorandum.
"We were close to 80% of imports before this decision, and it was the 80% of the line that was selling," Bernhardt said. "We still have 10 factories in (Western North Carolina), some of which do have woodworking capability, so we'll retain some limited capability for case goods, even residential."
Bernhardt will continue to make case goods for its contract business and wood components for upholstery, but rely on its import program for the residential wood line.
Bernhardt said that the plant would begin immediately to wind down most manufacturing functions.
Employees were told that all affected would be guaranteed at least 60 days of employment with pay and benefits, as well as retention bonuses for those who elected to stay during the winding-down operations. Employees were also notified that the company would pay for additional 60 days of health insurance coverage.
Bernhardt's residential case goods division was an early pioneer in imports, starting in the 1980s in Taiwan. It recently began offering some of its collections on a direct container basis to some retailers, and plans to greatly expand the program at the upcoming April market in High Point.
The company employs around 1,700 people in its North Carolina plants.
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Bernhardt to end production at Plant 2
Mar 27, 2005
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