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Ethan Allen plans to expand NC upholstery operations
Jun '09
Farooq Kathwari (Chairman and CEO)
Farooq Kathwari (Chairman and CEO)
Ethan Allen Interiors Inc 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."

Ethan Allen Interiors Inc

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