Ethan Allen to convert existing manu facility into regional distribution center
08 Sep '05
2 min read
Home furnisher Ethan Allen Interiors Inc announced a plan to convert one of its existing manufacturing facilities into a large, regional distribution center.
The plant, which is currently occupied in the production of wood case goods furniture, is located in Dublin, Virginia. In connection with this initiative, the Company will permanently cease production at the Dublin location and consolidate the distribution operations of its existing Old Fort, North Carolina location into the new, larger facility.
The decision impacts approximately 325 employees, of which the Company expects approximately 75 to remain employed by Ethan Allen in new positions. The Dublin facility, which totals approximately 570,000 square feet, was purchased by the Company in October 2000.
Since that time, approximately 450,000 square feet of the facility's available space has been used for manufacturing activities. Most of the production from the plant will be absorbed by Ethan Allen's remaining manufacturing facilities.
Farooq Kathwari, Chairman and CEO, stated, "They sincerely regret the impact that this decision will have on many of comapny employees. They believe, however, that this action will strengthen the logistical capabilities and improve the Company's remaining US manufacturing operations."
Ethan Allen has 11 remaining plant locations, including 5 wood case goods plants, 5 upholstery plants, and 1 accessory assembling plant. These facilities total nearly 3.5 million square feet and employ approximately 3,700 people.
marketing@alchempro.com
