High Level, NC – Stanley Furnishings (Nasdaq NGS:STLY), closing its U.S. household furniture production, noticed a burst of closing orders. The household furniture maker says the closure will be “money generative.”
Stanley Home furniture Young America bed room household furniture generation. Its reduction declined to $ two.one million, down from $ two.seven million 1 yr in the past, on sales of $ 24 million – flat with the yr prior. In a sour notice, a boiler explosion rocked Stanley’s Robbinsville, NC plant. today documented revenue and working outcomes for the 2nd quarter of 2014.
A $ sixteen.two million restructuring costs (largely writedowns of assets and inventories) for ending U.S. generation of its Young The united states line is provided in the figures. Next quarter Stanley Household furniture says worker severance will operate an further $ three hundred,000 to $ five hundred,000.
A massive number of orders arrived as the April 29 deadline neared.
“We anticipated to use cash initially in get to fulfill all open orders, including the large inflow of orders we gained when we declared ceasing domestic manufacturing,” mentioned Glenn Prillaman, CEO, who expects Stanley Household furniture “need to create income in the coming quarter by means of the sale of property associated with the Young The usa procedure.” Stanley Household furniture will enter the 3rd quarter with a $ two.three million Younger The us backlog and roughly $ three million of unsold inventory.
Prillaman mentioned Stanley Furniture’s retailers are observing a softening in consumer visitors, and we have observed a corresponding softness in orders that started in the latter part of the second quarter. Presented our changes to our overhead structure, we count on offering, standard and administrative costs to be approximately $ three.5 million quarterly for the around term, excluding restructuring expenses.”
As element of Stanley Furniture’s restructuring initiatives relevant to its ceasing domestic production, the organization also announced today that Micah S. Goldstein, its COO and CFO, plans to resign in mid-August.