— Furniture Today,
MORRISTOWN, Tenn. — Upholstery major Berkline/BenchCraft said it will close its Baldwyn, Miss., factory in late August, putting up to 400 people out of work.


The company said the 10-year-old plant is being closed in order to improve manufacturing efficiencies and hold down production costs.

“In today’s low-cost, highly competitive home furnishings environment, this gives us an opportunity for cost reductions that enable us to maintain our competitiveness,” said President and CEO Bill Wittenberg.

Also contributing to the closing is the company’s increased reliance on Asian imports, as well as the recent bankruptcies of several large retail customers, he said.

Wittenberg said the Baldwyn facility had been running well below capacity in recent months and its volume can be absorbed by other Berkline/BenchCraft plants in northern Mississippi and Tennessee.

“We are able to keep our production at the same levels with fewer plants in service because of productivity gains in operations,” he said.

The Baldwyn factory produces reclining chairs, loveseats and sofas. The company said an undetermined number of workers will be offered jobs at other Berkline/BenchCraft facilities.