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| At Bassett Furniture |
The Bassett fiberboard plant is scheduled to close by year's end, the company announced Thursday. (Bulletin photo) |
Friday, October 16, 2009
By GINNY WRAY - Bulletin Staff Writer
Bassett Furniture Industries Inc. said Thursday it will close its fiberboard facility in Bassett by the end of the year, ending the jobs of about 45 employees.
The plant, which began production in 1970, produces medium density fiberboard (MDF) made from wood fibers, according to a news release.
“We have struggled with this decision for some time and regret the impact it will have on our employees,” said Robert H. Spilman Jr., president and chief executive officer. “Unfortunately, the local demand for medium density fiberboard has been depressed and no longer supports our long-term strategy.”
The plant had provided fiberboard for Bassett as well as Stanley, Hooker and possibly other furniture manufacturers, according to Jay S. Moore, director of communications for Bassett.
“When that plant went into production, it was in a day when we had other manufacturing facilities where they would take those wood fibers and ship all of those to this facility where they made medium density fiberboard,” he said. “Now, without those facilities, it makes it more challenging.”
Bassett will offer assistance to the employees being displaced, the release stated.
“The Bassett fiberboard employees have been extremely dedicated and loyal for many years. We will provide them with outplacement assistance and severance to make the transition as smooth as possible under the circumstances,” Spilman said.
In connection with the fiberboard plant closing, Bassett said it expects to record a charge of approximately $1.0 million in the fourth quarter, primarily associated with the writedown of property and equipment.
Bassett’s only furniture production in Henry County is at its table plant in the Beaver Creek industrial park, Moore said. The work schedule at that plant was not available on Thursday.
Thursday’s announcement came two days before the opening of the International Home Furnishings Market in High Point, N.C., on Saturday.
“If you look back to the last market, our traffic was ahead of a year ago,” Moore said. “We’re encouraged about the other side of our business, the non-store business,” such as with gallery stores, mom-and-pop furniture stores and traditional accounts.
“We think there are some opportunities for growth there,” Moore added.
He noted that Bassett had some improvement in its third-quarter earnings, which were released recently.
“September turned out pretty good,” but business is tough, Moore said. “We’re fighting like everyone else.” |
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