Chromcraft to Close Sumter Cabinet Plant

September 4, 2006  by in UnCategorized   

By Home Furnishings Business in Case Goods on September 2006 Chromcraft Revington Inc. said on Friday said it would shut down its case goods plant in Sumter, S.C., Oct. 31, as it moves toward outsourcing more goods in Asia.

The 521,000-square-foot plant produced Sumter brand bedroom and dining room furniture. The move will result in the layoff of around 200 employees.

Chromcraft also plans to consolidate its Silver and Peters-Revington lines, which will result in the closure of the 160,000-square-foot Silver warehouse and distribution center in Knoxville, Tenn., by the end of the year. That will result in another 16 employees losing their jobs.

The actions, which will involve restructuring charges of between $6 million and $7.5 million pre-tax, mostly in the third quarter, will cut Sumter’s workforce by around 17 percent. Chromcraft hopes to sell both facilities.

Chromcraft said the restructuring aimed at reducing fixed costs and improving overall asset utilization.

In July, the company had reported lower second-quarter shipments of occasional, bedroom, dining room and commercial furniture compared with the prior year.

Chief Executive Officer Benjamin Anderson-Ray had said the company was looking at greater global sourcing and value added U.S. assembly and distribution operations.