Vaughan-Bassett Released this the followingstatement to WFMY News 2:Vaughan-Bassett Furniture Company announced today that it will "mothball" its Elkin plant in sixty days, which will lead to the loss of approximately 400 jobs. The company emphasized, however, that it has no plans to sell either its plant or its equipment. "We are now facing both Asian competition and a severe and possibly prolonged recession, producing the worst slump in the furniture business in at least thirty years, but one day business conditions will improve," said Wyatt Bassett, President and CEO of Vaughan-Bassett Furniture Company. "By keeping both our factory and equipment intact, we will maintain the ability to re-open a portion or all of the facility when demand returns to normal levels," he added. Vaughan-Bassett will continue to manufacture bedroom furniture at its factory in Galax, Virginia, and will deliver furniture from Galax and from both its Elkin and Boonville warehouses in North Carolina. "We will continue to carry the same amount of inventory for our customers and offer them the same quick delivery that we always have offered," said Wyatt Bassett. "We will be able to supply our dealers with every piece of bedroom furniture they are now selling and we will maintain the superior service and quality they expect from us," he added. "By 'mothballing' the Elkin plant instead of permanently closing it, we keep the flexibility needed to react swiftly as business conditions evolve in 2009 and beyond." Vaughan-Bassett will apply for Trade Adjustment Assistance (TAA) with the U.S. Department of Labor for affected employees. Workers qualifying for TAA may be eligible for extended unemployment compensation, relocation allowances, job search allowances and a health coverage tax credit. The process could take three to six months for approval. In addition, the company will work closely with the North Carolina Employment Security Commission to provide career counseling, job referral and other services to affected employees. Vaughan-Bassett Furniture Company was founded in 1919 and is headquartered in Galax, Virginia. It has no manufacturing facilities outside of the United States. />
