Thomasville Furniture closes fourth plant this year
By Jeff Linville -- Furniture Today, October 15, 2001
THOMASVILLE, N.C. — Thomasville Furniture is closing a plant in Hickory, N.C., the fourth plant to shut down this year but the first upholstery-making facility.
Highland Avenue Plant No. 7's upholstery manufacturing will be moved to other Thomasville plants, principally in North Carolina at Hickory, Statesville and Troutman, said Chris Pfaff, president and chief executive officer.
"Business conditions remain very challenging right now," said Pfaff. "We had taken steps earlier in the year to align our capacity with demand, including some layoffs in upholstery. Now, demand for our upholstery products in the near term can be satisfied with the production capabilities of one less facility."
In March, Thomasville said it would close two plants making occasional and home entertainment furniture. Those moves in Fayette, Miss., and Johnson City, Tenn., affected 390 employees. The work was transferred to North Carolina plants.
In June, the company announced the closing of its West Jefferson, N.C., case goods plant, which had 239 workers, and another 375 employees were laid off at other factories.
The Hickory upholstery plant employs 100 people. Thomasville hopes to retain about half by offering workers jobs at other North Carolina facilities.
Between the four plants and the layoffs, the manufacturer will cut its workforce by 1,054. It still operates 31 facilities in North Carolina and Virginia, employing about 6,600 people.
At the time of the March closings, Thomasville said the actions were part of a move by parent Furniture Brands International to cut 1,000 jobs corporate-wide. FBI also owns Broyhill and Lane.
"We regret the hardship this latest change will cause for the affected employees, their families and the communities where these facilities are located," said Pfaff. "But we must align our capacity with the demand for our products and responsibly control the costs of running our business."
