Statton shutting down
By Heath E. Combs -- Furniture Today, October 6, 2008
HAGERSTOWN, Md. — Officials with Statton Furniture Mfg. Co., a domestic producer of high-end, solid-cherry, 18th- and 19th-century case goods here, say the company will close after 82 years.
The family-operated company made the decision to liquidate its assets so it would not be put in a situation where it may have to file for bankruptcy protection, said President T. Hunt Hardinge III.
“We felt we had to be proactive. If we walked away we could avoid bankruptcy,” he said.
“I think people are really scared to buy right now and orders just truly dried up over the summer. We just don't have the reserves to sustain operations.”
In the last 15 years, Statton's employment has declined from 200 employees to just 38 remaining at the plant, Hardinge said.
He said that unlike past years, earnings did not improve in the third quarter this year. Pressure from imports in the past several years and the loss of some retail customers also have hurt.
Another blow came in January with the death of company CEO and Chairman Philip J. Statton, who had been with the company since 1972 and was a grandson of founder Philo Statton.
The current financial crisis has also contributed to the company's decline, Hardinge said.
“My grandfather founded the company in 1926,” said Hardinge, who also is a grandson of Philo Statton. “We tried hard and diligently to keep operation going but felt this was the time to do it and we are going out with out heads high.
“I think we can walk away proud of our history, that we made a terrific product and didn't lower our standards.”
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