COLTON, Calif - Ashley Furniture announced it will close its manufacturing plants in Colton, California, and shift the production of the upholstered furniture and bedding to other company plants in the United States. Ashley Furniture notified the 840 employees last week that the plants would close Oct. 25.
"By shifting the majority of Colton production to other U.S. facilities we will create more efficiency and better use of existing capacity in our manufacturing network," said a statement from Ashley Furniture and published in the San Bernardino County Sun. The residential furniture manufacturer has production facilities in Wisconsin, North Carolina and Mississippi.
"We thank our employees for all their hard work, but closing these plants and rebalancing our manufacturing mix strengthens production capability and cost structure and will help ensure Ashley’s continued ability to compete effectively long-term in the global marketplace from a U.S. base.”
Ashley said it gave employees 60 days' notice and complied with federal regulations governing layoffs.
The statement from Ashley noted that, in accordance with California's Worker Adjustment and Retraining Notification (WARN) Act, employees will receive their pay and benefits for 60 days following the notification date. The nearby distribution center and retail store were not affected.
Employees said they were asked to show up at either the National Orange Show Events Center in San Bernardino or the Riverside Convention Center on Friday morning at 7 a.m. They were then informed of the closings.
Founded in 1945 and headquartered in Arcadia, Wisconsin, Ashley Furniture Industries, Inc. is considered the world's largest manufacturer of residential furniture and has more than 600 retail stores worldwide.
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