Stanley to close Lexington, N.C., plant
Also will eliminate two executive positions
Thomas Russell -- Furniture Today, July 8, 2008
LEXINGTON, N.C. — Stanley Furniture said Tuesday it will close its Lexington, N.C., manufacturing plant, eliminating 350 jobs over the next three months.
The plant produces the company’s Young America line of infant and youth furniture. Stanley plans to consolidate its production into its Robbinsville, N.C. plant, which already makes many of the same Young America products.
The company said it was making several moves to “improve its cost structure in response to industry conditions.”
It also is eliminating two executive positions, vice president of purchasing and vice president of human resources, jobs held by Shawn Stevens and Dennis Taggart, respectively. Their duties will be handled by other members of the management team.
The transition is expected to be completed by Dec. 31. As part of the move, Stanley said it expects to take pretax restructuring and impairment charges between $6 million and $8 million in the second half. The company ultimately expects annual pretax savings of $5 million to $8 million.
Stanley President Jeff Scheffer attributed the decision to “an industry-wide weakness in consumer demand for residential furniture not seen since the early ’80s. We are making difficult moves from top to bottom and throughout our business to remain profitable now and to be well-positioned for continued success when demand eventually improves.”
He said domestic manufacturing, which accounts for about two-thirds of company revenues, will remain a crucial part of Stanley’s business model.
“Our proven business model depends upon domestic manufacturing as a point of differentiation to provide an extensive array of well-designed products supported by excellent quality and quick delivery,” Scheffer said. “Our commitment to domestic manufacturing means that we must continue to manage our costs through improved work flow, labor productivity and better asset utilization.”
As part of that process, he said, the company plans to add 200 jobs in Robbinsville in the next two years and will invest in training, facilities and equipment to support the Young America line. Displaced Lexington plant workers can apply for those jobs, the company said.
Stanley plans to work with North Carolina officials to arrange career counseling and other benefits for the displaced workers. It also will apply for Federal Trade Adjustment Assistance, which allows displaced workers to apply for extended income support and training help.
Stanley will retain its Lexington warehouse facility in a separate location with about 20 workers.
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Stanley to close Lexington, N.C., plant
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