Is Klaussner Furniture going out of business? Asheboro-based Klaussner Home Furnishings went out of business in August 2023 as the firm started the process of closing its operations.
Stay in the loop to discover more about Klaussner Furniture! Here we will discuss almost everything about this important topic! So, let’s not wait up and keep on reading.
Klaussner decided to cease all of its facilities permanently. It is anticipated that the process will begin on August 7, 2023. It is all happening because the company has been struggling with financial and supply issues. Klaussner was challenged to maintain current payments with its key suppliers. Besides, it also faced difficulty in receiving goods, according to multiple sources in the industry.
The company released a notice on its official website regarding its closure. In a notice, the firm said: The lending source of Klaussner refused to fund its company’s operations in the future. It is not a planned move, as the outcome was not reasonably foreseeable. Still, Klaussner is unable to sustain its operations due to unexpected circumstances. So, the firm makes an initiative to close all of its operations. This bold move is so difficult for the company. Even though it decided to cease its operations permanently to inform all its employees and customers, Klaussner is providing as much notice as possible.
About Klaussner
Due to many challenges and unexpected business circumstances. Klaussner Furniture and its indirect and direct subsidiaries made this move. They are now set to wind down the operations unexpectedly.
However, the company is still working to offer resources and essential information. That may assist the company’s entire workforce with the next steps for displaced employees as it becomes available. Klaussner added, “All the employees will be informed. Through the contact information that we already have on file.”
According to sources, Klaussner had around 826 employees in its Randolph County-based facilities. Besides, it had 58 employees in Montgomery County. The company’s CEO and President, David Cybulski, alerted its workforce in the N.C. Department of Commerce to the layoffs. Cybulski released a notice on Klaussner’s website explaining the reason for the layoffs.
Klaussner, based in Asheboro, was established in 1963. It was responsible for manufacturing domestic home furnishings 65 to 75 per cent. Asheboro-based Klaussner mainly manufactured home furnishings in Montgomery and Randolph counties.
Klaussner also opened its 90,000 sq-foot showroom at 101 N. Hamilton St. in High Point 2011. Besides, it owned furnishing showrooms in Chicago and Las Vegas. It is described as one of the largest home furniture makers across the country, according to the Dun & Broad Street online business directory.
Klaussner has more than 150 Klaussner Home Furnishing Galleries in North Carolina and Iowa. Also, it has plenty of licensed Klaussner home stores. The spokesman of the company has yet to reveal any more information. An email still needs to be delivered to the address mentioned in the website statement for media inquiries.
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What Did Former Employee Speak About Its Closure?
One of the former employees of the company, Jason Rich, worked for almost two years for the company. But he was laid off a month ago.
He said. “Besides me, many people depend on that paycheck, but now it seems they are done. Moreover, I have been promised to get more money. But I was fired. At that time, they pledged to provide us with better equipment. Now they have shut down their operations.”
David Smith, Company’s mayor, stated. “Klaussner decided to close operations, but it was a surprise for all of us.”
Who Owns Klaussner Furniture?
Klaussner Home Furnishings has been a leading producer of residential furniture. It was founded in 1963 by Stuart Love. It deals in motion, sleepers, bedrooms, upholstery, dining occasional, and accent furniture. Later, in 1979, Hans Klaussner took over Klaussner Furnishings.
The Monomoy Capital Partners, a New York-based investment firm, acquired Klaussner Furnishings in 2017. David Cybulski is the CEO of the company.
Klaussner’s licensed lifestyle collections included Stacey Garcia Home and Trisha Yearwood Home Collection. After being acquired, Klaussner Furniture sold its Triad facilities. It sold more than 265 acres for around 50.6 million U.S. dollars in 2020. The company is affiliated with Asheboro-based foam manufacturing company – Prestige Fabricators Inc.
The five manufacturing companies are located in North Carolina, along with its Asheboro headquarters. The residential furniture company produced more than half of its products domestically in the listing of the largest North American wood products producers, FDMC 300. Klaussner ranked in the 36th position. Klaussner’s estimated sales last year were more than 300 million U.S. dollars.
Is Klaussner Furniture Still In Business?
We are not sure whether Klaussner Furniture is still in business. More information has yet to be released on its operating stores as the company was dealing with unfortunate and uncalled-for business problems.
Klaussner Furniture closed its seven sites nationwide, including one in Montgomery County, while six have been shuttered in Asheboro. The company will also lay off all its employees in the next two weeks.
Over the past years or even decades, the furniture company expanded its business considerably. It experienced growth and expansion. Due to this, Klaussner became an essential part of the furniture industry. It manufactures an expanded range of products. It caters to different styles and preferences.
Still, you can buy Klaussner Furniture by visiting a few websites. Websites that carry the company’s products include Wayfair, Amazon, and many more.
Who Are The Main Competitors Of Klaussner?
Klaussner Home Furnishings is considered one of the largest furniture companies in America. It has a handful of showrooms in High Point, Chicago, and Las Vegas. It is headquartered in Asheboro, N.C.
Klaussner was well known for producing the world’s best quality furniture. The company was one of the best for North Carolina citizens, providing substantial employment. It was committed to providing the best of the best quality products to all of its consumers. That’s why it makes a name for itself in the market even though Klaussner has tough competition, as plenty of companies compete and challenge Klaussner.
Let’s find out the main competitors of Klaussner:
- Craftsmaster Furniture Inc. – It has 585 employees. It generated 138.7 million U.S. dollars in revenue.
- Coaster Fine Furnisher – It has 593 employees. It generated 231 million U.S. dollars in revenue.
- Mitchell Gold + Bob Williams – It has 924 employees. It generated 217.2 million U.S. dollars in revenue.
- Hooker Furniture Corp – It has 1,294 employees. It generated 578.1 million U.S. dollars in revenue.
- Ethan Allen Global Inc – It has 4,188 employees. It generated 766.4 million U.S. dollars in revenue.
- Standard Furniture – It has 781 employees. It generated 271.9 million U.S. dollars in revenue.
The Bottom Line
Klaussner is closing all of its operations entirely. This process will be underway by August 7, 2023. Klaussner has not warned in the past nine months about its closures. It indicates that the closure is a sudden decision of the company. The second major U.S. Furniture Manufacturer made this move immediately.
United Furniture Industries abruptly announced layoffs. It laid off all of its workforce before Thanksgiving. Later, in December, United Furniture Industries filed for bankruptcy protection. It sold its inventory, real estate, and equipment during that time. On the contrary, Klaussner had yet to file for Chapter 11 bankruptcy protection.
