Broyhill Furniture To Close Last Domestic Case Goods Plant

Furniture World Magazine

Broyhill Furniture Industries, a subsidiary of St. Louis, Missouri based Furniture Brands International, announced the closing of its Corporation case goods manufacturing facility located in Lenoir, North Carolina. The Corporation plant is a 628,000 square foot facility and employs approximately 390 people. The plant will cease manufacturing operations in February of 2007. After that time, all Broyhill wooden furniture will be manufactured overseas. Furniture Brands estimates the restructuring, asset impairment and severance charges associated with this closure will total approximately $3.0 million ($2.0 million net of income tax benefit), or 4 cents per diluted common share. We estimate almost all of these charges will be taken in the first quarter of next year. Furniture Brands International is one of America’s largest residential furniture companies. The company produces, sources and markets its products under six of the best-known brand names in the industry – Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.