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Broyhill To Close Its Pacemaker Case Goods Plant

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Broyhill Furniture Industries, Inc. announced the closing of its Pacemaker case goods manufacturing facility. This difficult decision is a result of Broyhill’s continued effort to remain competitive in a segment of the furniture industry dominated by offshore manufacturers. Company spokesman Tom Lentz said, “This incredibly difficult decision is a direct result of the competitive pressures we are seeing in our domestically produced case goods products. Unfortunately, this has become a too familiar consequence of the increasingly global manufacturing environment in which our products must compete. Over the past several years we have implemented various strategies to remain competitive with off shore manufacturing, but imported products continue to replace domestically-produced products across this segment of the industry, and we have had to take this step so that Broyhill case goods will represent a value in our retailers’ stores. Pacemaker has one of the hardest working and finest work forces in the country, and it is sad to see our loyal employees affected by circumstances beyond anyone’s control.” The 522,000 sq. ft. Pacemaker facility located at 802 Complex Place, S.W., Lenoir, NC was built in 1971 and employs 692 associates. The Pacemaker facility will cease operations after the normal close of business for the week ending August 26, 2006. Employees will be laid off as early as August 9, 2006. Some selected employees in various departments may continue to work at the facility in cleaning and preparing the facility for sale or storage until approximately September 16, 2006. Some individuals in the shipping and maintenance departments may continue to work at the facility until as late as November 30, 2006 at which time Broyhill will permanently close the facility. Employees who are laid off will be placed on a callback list and may be contacted as openings become available in our other facilities for a period of 90 days after their applicable layoff date. After these layoffs become effective, Broyhill will continue to employ approximately 1,900 associates. Broyhill produces furniture for living rooms, dining rooms, bedrooms and home entertainment. Broyhill Furniture is headquartered in Lenoir, North Carolina, and is part of Furniture Brands International, also the parent company of Drexel Heritage, Henredon, Maitland-Smith, Lane and Thomasville. # # #

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