Ethan Allen Interiors Inc. plans to close its Spruce Pine, N. C. case goods manufacturing facility and convert its Atoka, Okla., upholstery manufacturing facility into a regional distribution center.
The company will permanently cease production at both locations, allocating production among its remaining domestic manufacturing locations and selected offshore vendors.
The decision impacts approximately 465 employees. Ethan Allen has nine remaining plant locations, employing about 2,300 people.
The company will record a pre-tax restructuring and impairment charge of approximately $13.5 to $14.5 million. Most of the earnings impact is expected to occur in the company's first fiscal quarter ending September 30, 2006.
Ethan Allen manufactures home furnishings, with about 300 stores located in the United States, Canada, and overseas and manufacturing facilities and sawmills located throughout the United States.