Stanley sells Virginia plants
Thomas Russell -- Furniture Today, January 18, 2011
STANLEYTOWN, Va. — Case goods importer and manufacturer Stanley Furniture has sold two of its remaining domestic facilities, but plans to lease back portions of the buildings.
In an 8-K report filed with the Securities and Exchange Commission last week, the company said it sold its 1.7 million-square-foot Stanleytown case goods plant for $2.4 million. This facility, which produced adult bedroom and other case goods, wound down its production operations in the last quarter of 2010 as part of the company's previously stated plans to source the adult line overseas.
The company also sold its Martinsville, Va., facility for $2.5 million. The facility originally produced home office and home entertainment, but later became a distribution facility.
The company continues to operate a plant in Robbinsville, N.C., that produces youth bedroom furniture.
Stanley plans to lease back 952,667 square feet of the Stanleytown facility for a five-year period at a fixed rate of $40,000 a month. It will use much of that space for warehousing and distribution. Some space also will be available for assembly and custom finishing.
The company also plans to lease back the Martinsville facility on a rent-free basis for a one-year term with an option to renew the second year. In November the company said it would use this facility for assembly and custom finishing.
Information was not immediately available on who bought the facilities or what uses they will have in the future.
Stanley also is in the process of auctioning off equipment in the Stanleytown building. The sale of the equipment, which ranges from band saws and CNC routers to kilns and planers, is being handled by Industrial Recovery Services of York, Pa., which describes the facility as one of the largest furniture plants ever auctioned. It is holding an online bidding process that closes at 1:30 p.m. Jan. 10. Details are at www.irsauctions. com.
The sale of the Virginia properties adds nearly $5 million to the company's balance sheet. In December, the company also announced it raised $12 million through the sale of common stock.
Stanley's stock price jumped more than 20% after the SEC filing to close at $4.16 in trading Wednesday.
Stanley also has received an additional $2.2 million in wood bedroom furniture import duties distributed by the government. The duties are disbursed under the collected through the wood bedroom furniture Continued Dumping and Subsidy Offset Act of 2000, which allowed U.S. companies that petitioned the government to pursue antidumping cases to receive duties collected from importers of foreign goods.
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