Stanley Furniture to cut 530 jobs in Henry
- May 13, 2010
Stanley Furniture has announced plans this week to move production from its Stanleytown facility overseas, laying off 530 workers in Henry County.
Stanley said the lay offs, which would mostly be in effect in the fourth quarter of this year, are part of a company restructuring plan. Stanaley is moving most of its adult line production overseas. The announcement came after the company reported a $19.1 million loss in the first quarter. It expects to pay $12 million to $15 million this year in restructuring costs.
“Due to the depth and length of this recession and the continued sluggishness of the housing market, many of our end consumers simply are not in the marketplace for premium residential wood furniture,” Glenn Prillaman, president and CEO, said in a statement. “Unfortunately, the decrease in demand for premium residential wood furniture has resulted in a unit volume well below the amount necessary to support a facility the size of Stanleytown.”
The company said it will use its Stanleytown facility as a warehousing and distribution center.
The announcement came a month after American of Martinsville closed, another furniture manufacturer, eliminating more than 200 jobs.
Gov. Bob McDonnell and Lt. Gov. Bill Bolling issued a joint statement concerning the lay offs. They said Secretary of Commerce and Trade Jim Cheng is working to coordinate plans to help displaced workers.
“Our thoughts are with all the workers who will lose their jobs and the families who depend upon the salaries brought home by these hardworking men and women,” McDonnell said in a statement.