Chromcraft exits upholstery
Gary Evans -- Furniture Today, October 6, 2008
LINCOLNTON, N.C. — Chromcraft Revington said last week it will close its manufacturing operations here and will cease making upholstered furniture.
The company said that manufacturing at the former Cochrane Furniture plant here will end by Nov. 29, and warehousing and distribution operations here will end in the first half of 2009.
The company said it will sell its buildings and equipment here and lay off 185 employees. In addition, it is reducing staff levels at the Lincolnton administrative office.
“The purposes of these restructuring activities are to reduce costs and improve customer service by consolidating these products into a common point of distribution, while redeploying assets,” the company said.
Chromcraft Revington said it plans to source its custom dining furniture produced at this site from various suppliers. Warehouse and distribution operations here are expected to be consolidated with other distribution sites.
“These actions are designed to reduce selling, general and administrative expenses, improve gross margin, and transition to a more customer-focused business model,” said Ronald Butler, CEO.
The company said it expects to incur restructuring costs and asset impairment charges of $5.5 million to $7 million pretax to write down buildings, equipment and inventories and to record severance benefits, inventory relocation and other exit-related costs.
