UPDATE: Eagle Inds. lays off 250, talks with potential investor

Heath E. Combs -- Furniture Today, March 19, 2013

BOWLING GREEN, Ky. — Eagle Inds. has laid off about 250 workers at its plant here and says it is in talks with an investor for a possible purchase of the entertainment furniture and case goods manufacturer.

Eagle was asked to suspend production while the potential investor does due diligence on the potential transaction, including an audit of the company, said James Bond, vice president of sales.

"We are not running production this week. Trucks are out making deliveries this week. All departments are manned this week in the office," Bond said.

The University of Kentucky's Small Business Development Center helped link Eagle with the investor, Bond said.

The company, which builds to order, is shipping items and completing works in progress, he said, adding that Eagle has been contacting accounts and still anticipates delivery in two weeks for orders.

"We're just not sawing wood.... Everything's just sitting still until they reach an agreement," Bond said.

Production could start again by next week and workers have been able to file for unemployment, he said, adding that the new investment group would give the company capital to broaden its product line.

Eagle Inds. filed for Chapter 11 bankruptcy protection about 30 months ago and emerged from bankruptcy in early 2012. The company has a total of about 287 workers, Bond said.