Hooker Furniture to Shut Roanoke, Va., Plant; 275 Workers to Be Affected by Closure

MARTINSVILLE, Va. (AP) — Hooker Furniture Corp. on Wednesday said it plans to close its Roanoke, Va., plant by August due to declining demand for its wood furniture made in the U.S.

The company expects to log restructuring and impairment charges of $2.8 million to $3.1 million, or between 23 cents and 26 cents per share, as a result of the closure, primarily in the third quarter. Shutting the plant will reduce annual fixed operating expenses by $2 million to $2.5 million, the company said.

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The Roanoke plant employs 275 workers — representing about 20 percent of the company’s total work force. The company said it will centralize domestic production at its largest plant and warehouse near the company’s Martinsville, Va., headquarters.

Hooker said it will offer severance packages to laid-off employees. No workers are expected to be transferred to other company operations.

Industrywide, furniture demand has been shifting toward cheaper imports, Hooker said. Orders and shipment rates for the company’s domestically produced wood furniture have been on the decline, while sales of its imported wood and metal furniture is on the rise.

Shares of Hooker Furniture fell 4 cents to end at $16.01 on the Nasdaq.