ST. LOUIS, MO -- Furniture Brands International announced it intends to close its Thomasville ready-to-assemble furniture and contract furniture plant in Appomattox, VA, early next year.
Fox 8 News reported that approximately 200 workers will be laid off.
The company said it will transfer a portion of its production to one or more Furniture Brands facilities in Thomasville and Lenoir, NC, and outsource to Asia and Latin America.
"This manufacturing realignment will result in more efficient overhead absorption and allow for a blended sourcing strategy for contract and RTA customers," the company stated in a press release. It added that the RTA plant's closure would result in restructuring charges totaling approximately $7 million with annual cost savings of approximately $5 million.
The impending closing of the plant is part of the latest strategy undertaken by Furniture Brands to "broaden its sourcing options for casegoods customers that it serves in the contract and ready-to-assemble (RTA) businesses." FBI said these products will be sourced from Furniture Brands' domestic manufacturing facilities and from contractors in "best-cost locations" in Latin America and Asia.
"Our manufacturing philosophy for the RTA and contract businesses is the same we've used for our core residential furniture production -- consolidate facilities to rationalize overheads, obtain logistics synergies, and take advantage of our scale and global supply chain," said Ray Johnson, senior vice president of global supply chain for Furniture Brands. The company's furniture lines include Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Pearson, Hickory Chair, Laneventure, and Maitland-Smith
Read Furniture Brands' press release.
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