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400 jobs cut in Elkin
Vaughan-Bassett to close Jan. 30
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Published: December 2, 2008
ELKIN
Officials were scrambling yesterday to determine what the ramifications would be from the January shutdown of Elkin's Vaughan-Bassett Furniture factory, which will leave 400 people out of work.
The plant will close Jan. 30.
The mood inside the plant was somber, said one employee. And the mood could be felt throughout the town.
"The thing about Vaughan-Bassett, they are about the third- largest employer in Elkin," said John Holcomb, Elkin's interim town manager. "We're very sorry for those families who are losing their jobs and will be impacted by this. It' s just a sad day for us."
Vaughan-Bassett officials cited competition from Asia and the economic downturn as reasons to close its only North Carolina plant. During the first three quarters of 2008, orders were down by 4 percent, company officials said. Now, orders are down by 30 percent.
Vaughan-Bassett will "mothball" the plant, meaning that it will lay off workers but has no plans to sell the plant or the equipment.
"We are now facing a severe and possibly prolonged recession and the worst slump in the furniture business in at least 30 years, but one day business conditions will improve," said Wyatt Bassett, the company's president and chief executive officer.
The Elkin plant could reopen if demand returns. The company has its headquarters in Galax, Va., where it will continue to manufacture bedroom furniture. Warehouses in Elkin and Boonville will remain open.
The Elkin plant has been in this town for at least 50 years, a company spokeswoman said.
Town officials are still assessing the impact of the closing. The tax value of the plant may decline, Holcomb said, but it could be worse if the company moved all the equipment.
The biggest concern right now is that Vaughan-Bassett is one of the town's largest water and sewer customers.
"We sell them a lot of water. We're still evaluating that. They are in the top-five customer base," Holcomb said.
The town is working to establish a new sewer authority. The plant's closing could have some effect on rates, but it's too soon to tell what the net impact would be, Holcomb said.
There will also be repercussions across Elkin, which has about 4,100 residents, he said. Those 400 employees buy gas, and they buy groceries in town.
"We've had some companies that closed in Elkin. I don't recall anything in recent memory like this. To lose 400 jobs at any one time, that's large for Elkin," he said.
■ Sherry Youngquist can be reached in Mount Airy at 336-789-9338 or at syoungquist@wsjournal.com.
About Vaughan-Bassett Furniture Co.
■ Based in Galax, Va., and founded in 1919.
■ Employs 1,200 people at its factories in Galax and Elkin. The factory in Galax will remain open.
■ Has warehouses in Boonville and Elkin that will remain open.
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