My hope is that once business conditions improve, we will be able to rehire some of the talented and loyal associates who have helped make Stanley Furniture the leader that we are today.
Jeffrey R. Scheffer, president and CEO, Stanley Furniture

Stanley Furniture Company will reduce its workforce and consolidate manufacturing operations by bringing its Martinsville production to Stanleytown and expanding warehouse operations at the Martinsville facility.

The consolidation, brought on by what Stanley describes as "the continued industry-wide slowdown" will result in a reduction of about 250 employees over the next two to four months that will include both management and hourly employees at both facilities. The company employs approximately 1,300 people at the Martinsville and Stanleytown.

“The continuing downturn in business conditions impacting our industry requires us to manage our cost structure,” says Jeffrey R. Scheffer, Stanley Furniture chairman, president and chief executive officer. “We sincerely regret the impact that this move will have on many of our associates."

Stanley Furniture will apply for federal Trade Adjustment Assistance (TAA) under the Trade Act. If certified, affected employees may be eligible to receive extended income support through Trade Readjustment Allowances, training programs, job search allowances and/or relocation allowances.

“My hope is that once business conditions improve,” Scheffer says, “we will be able to rehire some of the talented and loyal associates who have helped make Stanley Furniture the leader that we are today.”

The Company expects to record a pre-tax restructuring and impairment charge of about $6 million ($ 4.1 million after tax), or $.39 per share, about half of which will be non- cash in nature. Most of the earnings impact is expected to occur in the fourth quarter of 2007 and the first quarter of 2008.