May 27, 2014 10:55:49 AM
JACKSON -- A furniture factory that was once had more than 1,000 employees in Senatobia is closing.
Chromcraft Revington laid off as many as 200 employees earlier this month, leaving the furniture maker and distributor with about 30 employees to wind down its operations.
E.E. Wang, a spokeswoman for the company, said that the company's primary lender demanded repayment of its loans, prompting the shutdown.
"Our focus now is to maximize the asset value of Chromcraft Revington to fulfill outstanding obligations to its primary lender and to all other creditors to the maximum extent feasible," Wang said.
She says Chromcraft Revington plans to fulfill current orders and will provide an update on its future plans. When asked if Chromcraft Revington has filed for bankruptcy, Wang said "not to my knowledge." She says the company is examining all options, including a potential sale.
The company sold commercial and home furniture under the Chromcraft, Cochrane, Peters-Revington and CR Kids & Beyond brands.
The company was bought last year by Sport-Haley Holdings, which sells woman's golf clothing, for $3.45 million, after its own managers failed in a purchase attempt. Sport-Haley, in turn, is controlled by North & Webster LLC, a Massachusetts-based investment group.
Under new ownership, operations in West Lafayette, Ind., were closed. In April, Sport-Haley said it had moved headquarters and warehouse operations to Senatobia from Indiana, making "extensive headcount and expense reductions." The company said it was trying to sell its business furniture business, which accounted for more than $1 million in losses in 2013, with an eye to reaching profitability during the 2015 budget year.
Those plans were apparently disrupted when loans were called.
It's the latest in a series of economic setbacks for Tate County. BMW closed its parts warehouse there, consolidating operations elsewhere. And operations at the Twin Creeks solar panel plant collapsed before the company began hiring in large numbers.
The company opened its Senatobia plant more than 50 years ago, with employment peaking at more than 1,200, said Senatobia Mayor Alan Callicott.
"At one point, Chromcraft was one of the largest employers in north Mississippi," Callicott said. "Obviously you hate to lose any jobs in a community."
1. CRA distances itself from Realtor's 'threatening' letters to Burns Bottom property owners COLUMBUS & LOWNDES COUNTY
2. Online targeting of children by predators increasing COLUMBUS & LOWNDES COUNTY
3. Developer agrees to purchase Lee for $450K COLUMBUS & LOWNDES COUNTY
5. Maynard leaving Partnership for FSU job STARKVILLE & OKTIBBEHA COUNTY