Ethan Allen to Realign Case Goods Manufacturing
June 25, 2009
Ethan Allen Interiors Inc. (NYSE:ETH) plans to consolidate a portion of its case goods operations resulting in 320 employees losing jobs.
The company will consolidate its Andover, Maine, sawmill and dimension mill to its Beecher Falls, Vt., sawmill and dimension mill operations. The company will also consolidate machining, assembly and finishing operations from its Beecher Falls, Vt., plant to its Orleans, Vt., plant. The company will continue operations in its case goods plant at Old Fort, N.C.
Sixty employees at the Andover, Maine, factory will lose jobs, and 260 at the Beecher Falls, Vt., location will lose work.
Ethan Allen expects to record pre-tax restructuring, impairment, severance and other related charges of approximately $12.9 to $13.5 million, the majority of which will be non-cash in nature representing an after-tax impact of $8.2 to $8.6 million or $0.28 to $0.30 per diluted share. Most of this charge is expected to be recorded in the quarter ending June 30, 2009.
"We very much regret the impact of this realignment to our Andover and affected Beecher Falls associates," said Farooq Kathwari, chairman and CEO. "This consolidation provides an opportunity to our remaining associates in Vermont to resume a more normal work schedule."
Kathwari said the realignment will allow the company to maintain a competitive advantage from manufacturing in the U.S.
The company will consolidate its Andover, Maine, sawmill and dimension mill to its Beecher Falls, Vt., sawmill and dimension mill operations. The company will also consolidate machining, assembly and finishing operations from its Beecher Falls, Vt., plant to its Orleans, Vt., plant. The company will continue operations in its case goods plant at Old Fort, N.C.
Sixty employees at the Andover, Maine, factory will lose jobs, and 260 at the Beecher Falls, Vt., location will lose work.
Ethan Allen expects to record pre-tax restructuring, impairment, severance and other related charges of approximately $12.9 to $13.5 million, the majority of which will be non-cash in nature representing an after-tax impact of $8.2 to $8.6 million or $0.28 to $0.30 per diluted share. Most of this charge is expected to be recorded in the quarter ending June 30, 2009.
"We very much regret the impact of this realignment to our Andover and affected Beecher Falls associates," said Farooq Kathwari, chairman and CEO. "This consolidation provides an opportunity to our remaining associates in Vermont to resume a more normal work schedule."
Kathwari said the realignment will allow the company to maintain a competitive advantage from manufacturing in the U.S.
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