Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:ETH)
today announced it will expand its upholstery manufacturing operations
in Maiden, North Carolina as it transfers production from its upholstery
operation in Chino, California.
The Chino facility lease expires in seven months and was the Company’s
only leased manufacturing facility. The consolidation of the Chino
operations will affect 65 employees plus an additional 137 contracted
workers provided by employment agencies. The Company expects to record
pre-tax restructuring, impairment, severance and other related charges
of approximately $2.7 to $3.1 million, the majority of which will be
non-cash in nature representing an after-tax impact of $1.7 to $2.0
million or $0.06 to $0.07 per diluted share. The majority of this charge
is expected to be recorded in the quarter ending June 30, 2009.
The Maiden, North Carolina operation currently has 540 employees and
with this change the Company expects to add 302 additional jobs over the
next three years.
Farooq Kathwari, Chairman and CEO commented, “The severe recession has
resulted in many challenges and also created opportunities to accelerate
the reinvention process in establishing a stronger enterprise. We very
much regret the impact of this consolidation to our Chino associates.
Our plan to expand upholstery operations in Maiden, North Carolina,
where we have been operating since 1949, will start immediately. We are
pleased that the state and local governmental authorities in North
Carolina worked with us in this transition.”
About Ethan Allen
Ethan Allen Interiors Inc. is a leading manufacturer and retailer of
quality home furnishings. The Company sells a full range of furniture
products and decorative accessories through a network as of March 31,
2009 of 290 design centers in the United States and abroad, of which 159
are Company owned. Ethan Allen operates eight manufacturing facilities
in the United States, which include two sawmills, and one manufacturing
facility in Mexico. For more information on Ethan Allen’s products and
services, visit ethanallen.com.
Ethan Allen Interiors Inc.
Investor / Media Contact:
David R.
Callen, 203-743-8305
Vice President Finance & Treasurer
