BASSETT, VA – Bassett Furniture Ind. Inc. announced plans to cease operations at its wood manufacturing facility in Bassett, VA. The closure of the 323,000-square-foot facility is planned to begin within the next couple of months and will affect approximately 280 employees or 15% of the company’s workforce.
The company said it will source the majority of products currently produced at the facility from overseas, to continue to produce certain bedroom products domestically and to discontinue providing certain slower selling items.
Robert Spilman Jr., president and CEO, said, "Closing this plant has been the most difficult decision we have ever had to make. We regret the effect that this will have on the many fine employees who work at our largest hometown plant…While we regret the decision, we also believe this is a needed step in our transformation from being primarily a domestic furniture manufacturing company to a retailer, manufacturer and marketer of branded home furnishings…We believe the end result will be a leaner, more profitable company that provides better returns for our shareholders."
Bassett, which will continue to operate two manufacturing facilities in the United States, also announced that its first quarter earnings were negatively impacted by lower sales levels and reduced margins compared to the same period a year ago.
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