Orleans closes domestic plant, shifts focus to imports
By Thomas Russell -- Furniture Today, November 30, 2009
COLUMBIA, Miss. — Wood furniture source Orleans Furniture has closed its case goods manufacturing plant here as part of a plan to focus on imports.
President and CEO Ed Marshall said the closing will affect 75 of the company's 115 workers.
The plant dates back to 1952, when the company moved its operations here from New Orleans. It originally produced case goods, but eventually shifted to paper-laminate bedrooms and display cabinets.
That shift coincided with the growth of Orleans' import division, Magnolia Classics, which started in 1998. Marshall estimated that today about 70% of the company's product mix, including bedrooms, display cabinets and fireplace/entertainment units, are imported.
He said closing the plant was a difficult decision, particularly given the history many employees have with the company, but was necessary because of poor business conditions.
“It's hard to make domestic bedroom and remain competitive,” he said.
Demand for display or curio cabinets also has declined for the past eight years, Marshall noted.
“Younger consumers are not into collectibles,” he said. “That demographic has changed, and the demand for curios has changed.”
The company is phasing out its paper laminate bedrooms and will focus on its imported Magnolia Classics wood and veneer groups. Four-piece sets in that division retail at around $999.
Orleans also will take its bestselling paper laminate display cabinets and convert those to wood and veneer versions. Its imported wood and veneer display cabinets retail from $199 to $999, Marshall said.
“This is the direction we have to take to keep going,” he said. “It has not been easy for anyone. You just have to make a move you think is best for the company.”
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