Chromcraft Revington to Close N.C. Plant

September 30, 2008  by in UnCategorized   

By Home Furnishings Business in on October 2008 Chromcraft Revington Inc., West Lafayette, Ind., announced Monday it will close its furniture plant in Lincolnton, N.C., by the end of November, and Lincolnton’s warehousing and distribution operations during the first half of 2009. Chromcraft also will reduce staffing at its administrative office there.

The moves will result in the layoff of around 185 employees.

The company intends to source its custom dining furniture produced at this site from various suppliers and cease upholstered furniture manufacturing.

Chromcraft Revington expects to incur total restructuring costs and related asset impairment charges of $5.5 million to $7 million pre-tax to write-down buildings, equipment and inventories and to record severance benefits, inventory relocation and other exit related costs. Third-quarter 2008 results are expected to include a pre-tax charge of $4.5 million to $5.5 million for asset impairments and inventory write-downs to anticipated net realizable value. A portion of these charges and expenses, resulting in cash expenditures ranging from $1 million to $1.5 million pre-tax, do not include expected cash proceeds from the sale of buildings and equipment ranging from $3.0 million to $3.5 million pre-tax. General, administrative and costs associated with the wind down of these operations will be recorded as incurred.

The restructuring charges associated with the asset impairment of buildings and equipment are expected to range from $3.5 million to $4 million pre-tax. In connection with the restructuring, a write-down of raw materials and in-process inventories, ranging from $1 million to $1.5 million pre-tax, is expected to be recognized to reflect anticipated net realizable value. In addition, severance for terminated employees, inventory relocation, and exit costs are expected to range from $1 million to $1.5 million pre-tax.

Chromcraft Revington’s residential brands under the CR-Home banner include Chromcraft, Peters-Revington, Silver Furniture, Cochrane and Sumter brand names. It sells commercial furniture under the Chromcraft brand name.