Posted on 04/02/2014 10:17:02 PM PDT by 2ndDivisionVet
HIGH POINT, NC - Stanley Furniture Company, Inc. today reported it will cease domestic furniture production in the factory that supports its Young America brand.
“We have a healthy Stanley business that is 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”
“We have decided to cease manufacturing operations in Robbinsville,” said Glenn Prillaman, President and Chief Executive Officer. “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,” continued Prillaman.
The company will honor all orders for Young America products placed on our before April 28, 2014. “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. Additionally, we have retained services to assist in maximizing value from assets related to the Young America brand,” commented Prillaman.
Orders for the company’s Stanley brand were up double digits in the first quarter, even with the weather-related challenges that plagued retailers across the country. “We have a healthy Stanley business that is 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,” concluded Prillaman.
The company ended its first quarter with approximately $16.7 million in cash and remains debt free. The results of the first quarter and impact of the restructuring will be discussed in detail on the upcoming conference call.
First Quarter 2014 Results
To allow for sufficient evaluation of restructuring charges, the company will delay its release of first quarter results until after market closes on April 30, 2014 and will hold its conference call on the following morning at 9:00 a.m. Eastern Time. The Annual Shareholder’s Meeting remains scheduled for April 17, 2014.
About the Company
Established in 1924, Stanley Furniture Company, Inc. is a leading designer and manufacturer of wood furniture targeted at the premium segment of the residential market. Its Stanley Furniture brand is supported by an overseas sourcing model and is distributed throughout the upscale market competing through superior product design, finish, styling and piece assortment. The company’s common stock is traded on the NASDAQ stock market under the symbol STLY.
Ah, here we are, ... “In May 2010, Stanley shifted production of adult furniture to Southeast Asia vendors, mostly in Indonesia and Vietnam, in the process cutting 530 jobs in Virginia.”
I’m as guilty as anybody for acquiescing to this seemingly inevitable trend, but isn’t there a limit somewhere?
How can a company turn a profit with these albatrosses, both of which were championed by one of the four most evil women of the 20th Century. Yes, that's FDR's chickadee, Frances Perkins.
Told them a decade ago I was only interested in their US made furniture, which was about 30 per cent of their production at the time.
They didn’t understand why. Told the guy if that’s the way he felt about the U.S., he should move to China.
I don’t know. How can you can compete with slave labor? ... or what is tantamount to it.
A limit to stupid government regulations that make the US an unfriendly place to do business?
Bottomless well I’m afraid
Correct, but don't forget obamacare.
The Dem unemployment legacy can be easily observed by absolutely anyone.
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Young Mr. Prillaman makes 300K a year.
Excuse me for laughing, but you could easily find a South Asian CEO for 1/3 of that. And he wouldn’t be some frat rat like Prillaman. He’d be one of the smarter people on the planet. Know some of them like that.
So the working people want too much? Bunk. With transfer and transaction costs now, overseas production saves only a few per cent.
This little pig just wants that extra little point or two because it bumps up the bonus. Minimum wage has nothing to do with it.
A Conservative Rebellion is brewing (as Jim Robinson has stated). That will set the stage for the abolition of the minimum wage, OSHA, the EPA, the NLRB and those other entities placing these United States at a competitive disadvantage. When that happens, Red China will again have its citizens living in thatched huts.
With or without the vituperation, that's the name of the game. Margin!
I would really feel safer if the US could become self sufficient. In the event of another world war, would we be able to supply ourselves with everything we need? I doubt it considering in that war our enemies would probably include China and southeast Asia. In fact, I doubt we would have the raw materials and manufacturing infrastructure or a skilled enough workforce to do what we did in WWII. Someone tell me I’m wrong.
What are they living in now? Concrete hellholes! You can't laugh off their capacity to take it. Heh.
Well...well...Carl Sandburg? I’ll just say I have as much admiration for him as I do for Upton Sinclair, another leftwing lunatic who strung some words together for a “living”.
I don’t blame them. The US taxes businesses at a higher rate than other western countries. Its a hostile environment to run a company here.
At least they’re fleeing before the obamacare mandate for business kicks in!
What part of “heh” don’t you understand?
Very well said!
When Calvin Coolidge was President, America's economic might was unchallenged. The absence of unions, the minimum wage, confiscatory corporate taxes and burdensome regulations allowed businesses to thrive. Liberty and the invisible hand of the free marketplace meant steady profits. In turn that led to thrifty, happy workers. That kind of America can -- and I believe will -- be restored by a return to Constitutional Conservatism and the Biblical Foundation that made these United States great!
Obamacare, Social Security and taxes force businessmen to make the tough decision of right-sizing. CEOs have a moral imperative and fiduciary responsibility to the investors and risk-takers who put it all on the line for an enterprise.
No I get it and only after posting did I realize my words may have comes across as mean-spirited. For that I’m genuinely sorry and I realize that linking to a pretty good poem by ol’ Carl doesn’t mean that you endorse his brand of wacky liberalism. I hope we’re okay since Conservatives are in for the fight of our lives as head toward 2016!
You bet.
Slave labor from your perspective but a very good wage to those who earn it in other countries where inflation has not devalued their money. The US becomes more socialistic, other coutries become more capitalistic.
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