Kroehler Furniture Lays Off Employees Followed by Class Action

January 4, 2026  by Karen Parrish in Business Strategy, Industry   

Kroehler, which is owned by American Signature Inc., manufactured furniture for the Value City Furniture brand. The company blamed a significant reduction in business for closing the plant, WHKY reported. Kroehler manufactured bedroom sets, dressers, sofas, recliners, cabinets, bookshelves, and other furniture pieces.

American Signature, the parent company of American Signature Furniture and Value City Furniture, filed for Chapter 11 bankruptcy protection on Nov. 22 in an attempt to reorganize its business and sell its assets to stalking-horse bidder ASI Purchaser LLC, after closing several of its stores.

WHKY News spoke to two employees, and they disclosed that letters were being passed out during operating hours on Monday (December 29) and Tuesday (December 30).

The letter reads, “This confirms that Kroehler Furniture Co. (a.k.a. Kroehler) (the “Company”) has determined that it will be closing its facility located at 1800 Conover Bldg. E, Conover, NC 28613, due to a significant reduction in business, resulting from its parent company’s Chapter 11 bankruptcy filing. Regrettably, your employment will be terminated as part of this closing.

“This WARN Act Notice (the “Notice”) provides you with the advance notice of termination and other information required by the Worker Adjustment and Retraining Notification Act of 1988 (the “WARN Act”). While the WARN Act requires employers to provide written notice at least 60 calendar days in advance of covered plant closings and mass layoffs, the Company was actively seeking capital or business to keep operations running and reasonably in good faith believed that advance notice would preclude its ability to obtain such capital or business.”

“The Company delayed giving notice, as it genuinely believed this new capital or business would allow the Company to avoid or postpone a shutdown for a reasonable period. As such, notice was provided as soon as was practicable.”

In addition, on the Strauss Borelli, PLLC webpage, a class action suit has been filed regarding the recent layoff due to the lack of the 60-day notification that was not given to the employees, as required prior to the mass layoffs.

The WARN Act is a federal law that requires certain employers to notify their employees, in writing, at least 60 days before a plant closing or mass layoff takes effect. As a result, we believe Kroehler Furniture Co. employees may be entitled to 60 days of severance pay and benefits.

The federal law, known as the Worker Adjustment and Retraining Notification (WARN) Act, requires covered employers to provide 60 days’ prior written notice to employees, their representatives, and certain government parties in the event of a mass layoff or plant closing. We are investigating whether Kroehler Furniture Co. failed to provide at least 60 days’ notice before laying off 208 employees and, therefore, violated the WARN Act.

According to WHJY, employees being laid off range in age from 18 to 87 years old.