American restarts lines after fire
By Gary Evans -- Furniture Today, February 24, 2008
Ecru, Miss. — Upholstery maker American Furniture had stationary, recliner and motion production lines back up and running early last week, a week after a raging fire destroyed over half of its 1.2 million square foot facility here.
Full production is expected to resume by the end of March, according to President Lyle Harris.
Motion and recliner lines were in operation because they were in a portion of the manufacturing facility that wasn't damaged by the fire. The company also opened a flex facility where it will be running two stationary lines for two shifts a day, Harris said.
In addition, the company plans to begin operations in a former Landmark upholstery plant Monday, which will accommodate eight lines of stationary production. In addition, American is also negotiating on a larger facility that will give it the potential to run 20 lines of stationary, which was what it was running before the fire.
Harris said the company has had overwhelming support from its owner, Compass Equity Group., and also from others ranging from Mississippi Gov. Haley Barbour to other manufacturers, which have offered office space and employees to help in the clean up.
Harris said the plant will be rebuilt. Two companies are working on the demolition of the 600,000 square feet of the building that was destroyed.
Harris said the company lost $12 million in finished goods and $800,000 in work in process, but that no concrete estimate for replacing the structure had been formulated.
He said about 400 of the company's employees are back at work with the remainder of the 1,100-person work force expected to be on the job by March 31. The company has extended health care benefits through that period.
Harris said that American immediately got an offer from Tim Mueller, a principal involved with the company that owns the Landmark facility. "He said if you need a facility it's available to you. Let me know how I can help. It was a handshake deal." Ashley, Southern Motion and others also have offered help.
The company's largest customer, which Harris declined to name, sent its loss prevention and manufacturing specialists to the plant with offers of help, and another customer offered to pay its invoices in 10 days versus the usual 30.
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American Furniture restarts lines after fire
Feb 19, 2008
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