Klaussner Furniture shuts down operations
August 8, 2023
Source: Triad Business Journal
After 60 years in business, Klaussner Furniture Industries Inc. of Asheboro announced yesterday it will shut down all operations.
"As the result of challenging and unexpected business circumstances impacting our operations, Klaussner Furniture Industries, Inc. and its direct and indirect subsidiaries must unexpectedly wind down the operations," the company stated in a release announcing the shutdown.
"Klaussner's lending source has unexpectedly refused to continue to fund the Company's operations. 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."
In 2017, New York-based private investment firm Monomoy Capital Partners acquired Klaussner Home Furnishings.
Klaussner said it has started the process of closing all of its facilities entirely. The company states on its website that it manufacturers over 70% of its products domestically through its five production facilities in North Carolina.
According to TBJ research, Klaussner employs about 925 at its Asheboro production facility at 405 Lewallen Road.
"Klaussner is working to provide information and resources to assist with next steps for displaced employees as it becomes available. This information will be communicated directly to employees via the contact information we have on file."
In 2020, Klaussner Furniture sold three of its Triad facilities and more than 265 acres for approximately $50.6 million. Klaussner sold its headquarters building at 405 Lewallen Road and its Prestige Fabricators facility at 965 N.C. 49 in Asheboro, as well as a warehouse and distribution site at 4306 U.S. 220 Business in Randleman, to asset manager AR Global of New York, with an agreement to lease back the three Triad buildings from AR Global as well as a wood fabricating facility in Candor that was sold for another $11 million-$12 million.
Last August, Klaussner promoted David Cybulski to president and CEO. Cybulski had served as interim CEO since July following the retirement of Terry McNew and had been the company's chief financial officer since 2019.