Vaughan to close last U.S. plant
By Jeff Linville -- Furniture Today, March 24, 2008
Galax, Va. — Longtime case goods producer Vaughan Furniture said last week it will close its last domestic manufacturing facility beginning about May 20.
About 275 jobs, including corporate positions, will be eliminated with the closure of the B.C. Vaughan plant. The company will continue to operate the T.G. Vaughan Distribution Center and the corporate office, both in Galax.
"The plant closing is not the fault of the employees of Vaughan Furniture Co.," said Bill Vaughan, CEO. "This move is a direct result of the continued popularity of imported wooden bedroom furniture. Our customers simply preferred to buy more and more product from overseas."
He added, "Even though we have kept the plant operating as long as possible, this is a profoundly sad day for all of us. We will miss working with all of these employees very much."
Vaughan Furniture was founded in Galax in 1923 by Taylor George Vaughan Sr., wife Blanche Bassett Vaughan, and brother Bunyan C. Vaughan.
"Our import business continues to grow, and we expect to employ approximately 35 people as we move our company forward as a marketing and sourcing supplier to America's furniture retailers" said Bill Vaughan.
Vaughan said the company will have some of its best-selling domestic collections made in Asia.
The closing will have an effect on Vaughan's step-up division, Virginia Sterling, now entering its third market. The better-priced case goods line, headed by father-son team John and Michael Scarsella, also was made in the Galax factory but now will seek a new manufacturing source.
Bill Vaughan said Virginia Sterling got off to a great start last year, garnering hundreds of placements and selling well after first reaching stores last summer. Michael Scarsella, marketing and sales coordinator, said Virginia Sterling has a strong inventory of finished goods and is continuing to do business. He said he's very hopeful about lining up a manufacturer to carry on with the line.
