Bassett Furniture Industries Inc. announced October 15 that it is closing its fiberboard facility in Bassett, Va. The plant, which began production in 1970, produces medium-density fiberboard (MDF) made from wood fibers. The closure of the facility will occur by the end of the year, affecting approximately 45 employees.
"We have struggled with this decision for some time and regret the impact it will have on our employees," said Robert H. Spilman Jr., president and chief executive office. "Unfortunately, the local demand for medium density fiberboard has been depressed and no longer supports our long-term strategy. The Bassett fiberboard employees have been extremely dedicated and loyal for many years. We will provide them with outplacement assistance and severance to make the transition as smooth as possible under the circumstances."
In connection with the closing of this facility, the company expects to record a charge of approximately $1.0 million in the fourth quarter primarily associated with the writedown of property and equipment.
Bassett Furniture Industries is a leading manufacturer and marketer of high quality, mid-priced home furnishings. With approximately 105 stores, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories.