Bassett Furniture Industries.(PLANTS CLOSING IN THE U.S.)

Bassett Furniture Industries has announced that it will shut down its 323,000-square-foot wood manufacturing facility in Bassett, Va., and eliminate 280 jobs, or about 15 percent of the company's workforce. "Closing this plant has been the most difficult decision we have ever had to make," said Bassett president and CEO Robert Spilman. "We regret the effect that this will have on the many fine employees who work at our largest hometown plant. We recognize that they have worked hard to meet the company's goals and this decision is in no way a reflection upon them. They have been extremely dedicated and loyal employees for many years and we will provide them with assistance to make the transition as smooth as possible under the circumstances."

The company is hoping to make a transition from being a domestic manufacturer to being a retailer and marketer of furniture made overseas. But the slumping housing market, high energy costs and higher interest rates are depressing Bassett's retail sales, which are down by almost 18 percent for the three months ending February 24 over the same period a year before. The company owns 130 retail stores.

"With the current business levels, it was no longer feasible to continue to operate the large Bassett manufacturing facility even with the efficiency improvements and investments made over the last two years," says the company. Bassett is working with the Virginia Employment Commission to provide outplacement assistance to the displaced workers and will file a petition with the Department of Labor allowing its laid off workers to receive Trade Adjustment Assistance.