by Company produced upholstery exclusively for retailer American Signature, which filed for Chapter 11 bankruptcy Nov. 22
CONOVER, N.C. —Kroehler Furniture, which produces upholstery for retailer American Signature announced it is closing, a move that expected to impact about 280 workers.
A source informed Home News Now that production ceased earlier this week at the 300,000-square-foot plant. American Signature is the plant’s sole customer.
Typically the WARN (Worker Adjustment and Retraining Notification) Act requires 60 days prior notice of a plant closure. A letter sent to employees published by WHKY News said that the closing is related to American Signature’s Chapter 11 bankruptcy, which has caused a significant reduction in business.
However, in the letter, it told workers that it did not give advance notice because it was actively seeking capital to continue operations. It said that it “reasonably in good faith believed that advance notice would preclude its ability to obtain such capital or business. The company delayed giving notice, as it genuinely believed this new capital or business would allow the company to avoid or postpone a shutdown for a reasonable period. As such, notice was provided as soon as was practicable.”
Employees were told of the closing earlier this week and layoffs were expected to occur on Dec. 31.
The plant, which is equipped with CNC routers and Gerber fabric-cutting equipment, dates back to the 1980s and has since expanded to its current size of around 300,000 square feet.
The company was founded in March 1893 in Naperville, Illinois as Naperville Lounge Company. According to a timeline on its website, Kroehler had annual revenues of $200 million and operated 14 factories employing thousands of workers across the U.S. during the 1960s.
