DANBURY, CT - Ethan Allen Interiors Inc. announced plans to consolidate some of its U.S. manufacturing operations.
The company’s Andover, ME, sawmill and dimension mill will be consolidated to its Beecher Falls, VT, sawmill and dimension mill operations. The company will also consolidate machining, assembly and finishing operations from its Beecher Falls plant to its Orleans, VT, plant. In addition, Ethan Allen will continue operations in its case goods plant at Old Fort, NC. This consolidation will impact approximately 60 associates at Andover and approximately 260 workers at the Beecher Falls location.
Ethan Allen is expected to record pre-tax restructuring, impairment, severance and other related charges of approximately $12.9 to $13.5 million, the majority of which will be non-cash in nature representing an after-tax impact of $8.2 to $8.6 million.
Farooq Kathwari, chairman and CEO of Ethan Allen, said, "While the severe recession has resulted in many challenges it has also accelerated our process of reinvention. We have one of the largest U.S. based home furnishings manufacturing operations, which we are committed to maintaining. Currently about 65% of our products are made in the U.S. This realignment provides us an opportunity to maintain a competitive advantage from manufacturing in the U.S."
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