Klaussner Furniture suddenly shuts down

Guy Lucas And Paul B. Johnson, The High Point Enterprise, N.C.
·2 min read

Aug. 8—ASHEBORO — Klaussner Furniture Industries Inc. unexpectedly announced it was closing all operations and laying off all of its employees nationwide, including more than 800 in the Triad.

A statement posted on the company's website on Monday said the closing is "the result of challenging and unexpected business circumstances impacting our operations."

"Klaussner's lending source has unexpectedly refused to continue to fund the Company's operations," the statement said. "This outcome was not reasonably foreseeable, but due to these unexpected circumstances, Klaussner can no longer sustain its operations. As a result, Klaussner has made the difficult decision to permanently cease operations and is providing as much notice as possible."

The company said it was working to provide information and resources to assist with next steps for displaced employees.

The company had 826 employees at its facilities in Randolph County and 58 in Montgomery County, according to the notice signed by President and CEO David Cybulski that the company sent Monday to alert the N.C. Department of Commerce to the layoffs. The notice giving the reason for the layoffs largely echoed the wording of the notice on Klaussner's website.

Asheboro-based Klaussner, which was founded in 1963, manufactured 65 to 75 percent of its home furnishings domestically, primarily in Randolph and Montgomery counties.

In 2011, the company opened a permanent, 90,000-square-foot showroom in High Point at 101 N. Hamilton St. after previously relying on a showroom in Asheboro. It also had showrooms in Las Vegas and Chicago.

The Dun & Bradstreet online business directory describes the company as "one of the nation's largest makers of home furniture," using the Distinctions and Klaussner names and also licensing such brand names as Sealy and Dick Idol. It had manufacturing and distribution facilities in North Carolina and Iowa, as well as a handful of licensed Klaussner home stores and about 150 Klaussner Home Furnishings Galleries.

A company spokesman could not be reached for more information. An email sent to the address provided in the website statement for media inquiries was not able to be delivered.

The industry publication Furniture Today reported Tuesday that the company had struggled recently to maintain current payments with key suppliers and had difficulty receiving goods.

Klaussner is the second major U.S. furniture manufacturer to close without warning in the past nine months. United Furniture Industries abruptly laid off all of its employees just before Thanksgiving and then filed for bankruptcy protection in December. United is in the process of selling all of its real estate, equipment and inventory.

Klaussner had not yet filed for bankruptcy protection as of Tuesday.