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Stanley to close N.C. factory
Thursday, April 3, 2014
From Bulletin and Business Wire reports
HIGH POINT, N.C. — Stanley Furniture Co. Inc. said Wednesday it will cease domestic furniture production in the North Carolina factory where its Young America brand has been made.
The decision will affect about 400 employees in Robbinsville.
“We have decided to cease manufacturing operations in Robbinsville,” said Glenn Prillaman, Stanley’s president and chief executive officer. “After a thorough review of both our own operations and the current marketplace for nursery and youth furniture, management and the board concluded that the Young America business could not achieve an acceptable level of revenue within an adequate time frame to assure sustainable profitability.”
The company “has decided that it is time for our company to focus its efforts on our profitable and growing Stanley brand,” he said.
The company will honor all orders for Young America products placed on or before April 28.
“What is important now is that we exit our domestic operation in a way that minimizes the impact on our retail customers, and that we do all we can to help our approximately 400 associates in Robbinsville with this difficult change for them and their families,” Prillaman said. “Additionally, we have retained services to assist in maximizing value from assets related to the Young America brand.”
Orders for the company’s Stanley adult furniture brand were up double digits in the first quarter, even with the weather-related challenges that plagued retailers across the country, according to the Business Wire.
The Stanley Furniture brand has been made offshore for several years.
“We have a healthy Stanley business that is making money. It is supported by a wonderful heritage, strong product in the field and future pipeline, and we are looking forward to the prospects of focusing our team solely on the growth and profitability of this brand in the short-term,” Prillaman said.
The company had pinned its hopes of reviving domestic manufacturing on the Robbinsville plant. In 2009, Stanley announced it would make its Young America line in the U.S. It planned to invest $8.2 million over 24 months to add machinery and equipment to modernize and automate the more than 300,000-square-foot manufacturing facility there, Prillaman said at that time.
Cribs rolled off the assembly line in Stanleytown, Va., in late September of that year, and the rest of the Young America line was manufactured in Robbinsville.
However, in 2010, the company cited sluggish sales and slashed its more than 500-person Henry County, Va., work force. It shifted all Young America production to Robbinsville, halted production in Stanleytown and ultimately sold its local plants.
Stanley kept the corporate office in Stanleytown and warehouses in Stanleytown and the North Bowles Industrial Park in Henry County. As of April 2012, the company employed a total of 68 employees in Henry County.
Change came again in 2013 when Stanley consolidated its showroom and corporate offices in High Point. Its headquarters had been in Stanleytown since the company was started in 1924.
The company stated Wednesday that it ended its first quarter with approximately $16.7 million in cash and remains debt free. The results of the first quarter and impact of the restructuring will be discussed in detail on a May 1 conference call.
To allow for sufficient evaluation of restructuring charges, the company will delay its release of first-quarter results until after the market closes on April 30 and will hold its conference call on the following morning at 9 a.m. The annual shareholders’ meeting remains scheduled for April 17.