Hooker to shut U.S. wood furniture plant |
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Thu, 18 Jan 2007 07:25
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MARTINSVILLE, Va. (AFX) - Hooker Furniture Corp. said Wednesday it plans to close its last wood furniture plant in the U.S., in Martinsville, Va., by the end of March.The plant employs about 280 workers, representing about 27 percent of the company's total work force, all of whom will lose their jobs.The company said it expects to record charges of $4.3 million to $4.8 million, or 36 cents to 40 cents per share, as a result of the closing.Hooker said declining orders and sales for the its domestically produced wood furniture and higher demand for its imported wood and metal furniture led to the move. The company added that the decision is 'in the best long-term interest' of its shareholders, customers and remaining employees.The company said it expects to cut its fixed operating expenses by $2.8 million to $3.5 million a year by closing the plant.'It is sad to see Hooker's wood furniture manufacturing era come to an end and to close the factory that has been the workplace for so many fine employees since our beginnings in 1924,' Paul B. Toms Jr., chairman, chief executive and president, said in a statement.The company said that in addition to severance packages, eligible employees will be able to receive distributions from its retirement plans.The plant had been producing bedroom and home entertainment furniture.Shares lost 2 cents to close at $15.31 on the Nasdaq.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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