From Home Furnishing Business
Stanley Furniture to Shutter Young America Production
The company's factory in Robbinsville, N.C., will be shuttered.
“We have decided to cease manufacturing operations in Robbinsville,” said Glenn Prillaman, president and CEO. “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 and has decided that it is time for our company to focus its efforts on our profitable and growing Stanley brand."
The company said it plans to honor orders of 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."
The company said orders for the Stanley brand were up double digits in the first quarter, and that the business is healthy and 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 results of Young America's closing will be discussed in its scheduled conference call May 1. The company plans to delay its release of first quarter results until after the close of market April 30 to allow for an evaluation of the impact of restructuring charges.