Broyhill Announces Sales Of Particleboard Facility

Furniture World Magazine

Broyhill Furniture Industries, Inc. announced the sale of its Particleboard facility to North State Property Holdings, LLC (North State). The Particleboard facility is located at 802 Complex Place SW, Lenoir, NC 28645, and produces particleboard for Broyhill and other manufacturers. Company spokesman Tom Lentz said, “The primary reason for this sale is the changing dynamics of the global furniture industry. Broyhill no longer is the primary user of particleboard produced in this facility and operating a supply facility is not part of our current business model. Fortunately, we are very pleased that North State plans to purchase and continue operating this facility in Lenoir.” Phillip Delp of North State Property Holdings, LLC added, “We are extremely pleased to purchase this fine particleboard facility. Our intentions are to continue manufacturing particleboard for the current customers as well as seeking additional customers. This is an excellent operation with fine associates and we expect to retain most of the current employees. We are looking forward to working with the community in Caldwell County to make this operation very successful.” The current 193,600-sq. ft. Particleboard facility began production in early 1996 as a state-of-the-art particleboard manufacturing plant. Broyhill employs 52 associates at the facility and will cease employing these associates no earlier than October 9, 2006 with the latest layoffs occurring by October 14, 2006. Ownership of this facility will be transferred to North State after the close of business for the week ending October 14, 2006. Expectations are that North State will employ the majority of the current work force as soon as the company assumes ownership. 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 (NYSE:FBN), also the parent company of Drexel Heritage, Henredon, Maitland-Smith, Lane and Thomasville.