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Broyhill Annouces Closing of Marion, NC Facility

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Broyhill Furniture Industries, Inc. announced the closing of the Broyhill Marion facility located at 426 W. Henderson Street, Marion, NC 28752. The Marion facility will cease operations after the normal close of business for the week ending May 20, 2006. Employees will be laid off as early as May 15, 2006. Some selected individuals in the plywood and maintenance departments may continue to operate at the facility until approximately June 16, 2006 at which time Broyhill will permanently close the facility. The 187,288-sq. ft. Marion facility was rebuilt in 1976 and currently employs 72 associates. Once all work in the facility is complete the factory will be permanently closed and offered for sale. Broyhill spokesperson Tom Lentz stated, “It is with deep regret that we find it necessary to close the Broyhill Marion facility. These affected Broyhill associates have been hard working and dedicated employees and this closure is not due to any failure on their part. The reason for the closure is due to the fact that it has become more cost effective to move the machining of the upholstery frame parts to the actual upholstery manufacturing facilities or source these parts from outside suppliers. The efficiency of the Marion operation has also been impacted by the loss of wood parts manufacturing that had supported a number of the company’s domestic case goods manufacturing facilities. These facilities were closed due to the globalization of furniture manufacturing which has resulted in domestic manufacturing facilities being unable to compete effectively with the lower cost imported furniture products now prevalent in the marketplace.” “This period of unprecedented change in the industry has forced most domestic furniture manufacturers to react to the competitive pricing pressures at retail. Broyhill is not immune to these factors and is evolving with the changing dynamics of our industry. We very much regret that it continues to result in the necessity to close facilities and lay off loyal, dedicated employees.” Broyhill is one of the largest, full-line furniture marketers in the world and is one of the most recognized furniture brands among consumers. The extensive furniture line includes products for living rooms, dining rooms, bedrooms, home entertainment and home office. Broyhill Furniture is headquartered in Lenoir, N.C. and is part of Furniture Brands International (NYSE:FBN), also the parent company of Drexel Heritage, Henredon, Lane, Maitland-Smith and Thomasville.

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