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Moosehead to close

Lost business to cheaper imports

By Jeff Linville -- Furniture Today, February 25, 2007

Monson, Maine — Case goods producer Moosehead Mfg. said last week it will close its doors, just two months after announcing plans to reinvest antidumping duties it received.

One of the original petitioners in the antidumping case against Chinese bedroom importers, Moosehead was known for solid-wood case goods and was the biggest furniture producer in this state.

The company was celebrating its 60th anniversary this year. Brothers Tolford and John Durham started the business in 1947 and passed it down through two generations. John Durham's grandson John Wentworth is now president.

In the late 1980s, the company employed 250 and had nearly $20 million in annual sales, but less than half that work force remained when the closing was announced to workers Feb. 8. All but 36 of the 120 workers were given their termination notices that day, with the rest staying on until the last orders are filled.

The company has an inventory of components and will continue to fill orders for several months, said Wentworth.

Moosehead tried to be innovative and expand into new niches. In October 2005, it introduced the J. Wentworth line of better-priced goods, starting with Yesterdays in solid maple. At the April 2006 market, J. Wentworth introduced an Art Deco collection, Circadia.

However, because of business lost to low-priced imports, sales didn't improve enough to keep the company afloat, Wentworth said. Neither did receiving about $204,000 in antidumping duties in 2006.

The closing announcement noted the DOC was holding another $9.95 million because of pending litigation. Based on prior distribution, Moosehead could receive another $92,000 if that money were released.

When the company received a disbursement of duties in December, Moosehead officials said they'd use the money for new equipment, and to help cover the cost of shifting to lean manufacturing. They also planned to use some funds for marketing and a conversion of its health care program.

Instead, Wentworth said, "We're looking at all our alternatives going forward, searching for alternative uses for these facilities." The factory is in a rural area and the community depends on the jobs it provides, he said.

He added that company owners chose to wind down the business in an orderly manner rather than filing for bankruptcy.

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