Ethan Allen Furniture Employees Worried after Sister Plant Is Shut Down

Ethan Allen Furniture Employees Worried after Sister Plant Is Shut Down

Workers at the Ethan Allen furniture plant in Randolph are expressing concern for their own jobs after the company announced last week its decision to close its plant in Island Pond. The northern Vermont plant will officially close its doors August 7, the company announced last Thursday.

Despite reassurances, workers said, there is a general sense of nervousness in light of this closing.

Representatives from Ethan Allen told state officials Monday that their decision to close the Island Pond plant was a "strategic move" designed to strengthen the company's position in the marketplace. The decision will leave 120 workers in Island Pond without jobs.

Christopher D'Elia, State Commissioner of Economic Development, spoke with Ethan Allen's CEO, Farooq Kathwari, on Monday and said he believes there is no threat to Ethan Allen's Randolph facilities, and that the business here may even be strengthened.

D'Elia pointed out that the Island Pond plant made smaller pieces, such as clocks, which are subject to foreign competition, whereas Randolph makes larger furniture.

The possible good news for Randolph workers is that Ethan Allen may now focus production in areas where the company is not as pressured by foreign competition, such as the type of furniture manufactured in Randolph.

Still Worrisome

Many Randolph workers found the Island Pond decision worrisome nonetheless. The Randolph plant is one of the company's smaller facilities.

"Management says everything's fine," one worker said, "but we don't know how it's doing. No one can really tell."

"The Island Pond closing is scary. We start thinking we could lose our jobs," one employee remarked.

Another said, "If the economy doesn't get better they might have to close here too."

One employee told The Herald we could use his name, but quickly contacted us to say he had changed his mind and was worried about being identified.

In the company's press release Kathwari stated, "The consolidation is necessary to focus on manufacturing our products in the most suitable plants in the United States. We believe this consolidation strengthens our remaining 18 manufacturing facilities and gives us the opportunity to manufacture our products more competitively."

Ethan Allen management in Randolph, as well as the company's public relations department in Danbury, Conn., were closed-mouthed about the entire issue. All officials declined to comment on how the closure in Island Pond might affect the Randolph division.

Off the Property

The Herald went to Ethan Allen's parking lot to interview workers on lunch break Tuesday but was quickly told to leave and escorted off the property by a company official.

Although Ethan Allen stated in its official press release that "Production from (closed) facilities will be absorbed by other Ethan Allen manufacturing plants," it is unclear how this change will affect Randolph's plant and its 190 workers.

Kelly Maicon, of Ethan Allen Public Relations in Danbury, said it is possible that Island Pond workers will relocate to other plants, but it is not yet clear whether this will truly be an option and how it will affect those facilities.

D'Elia said he hopes that in the long-term the decision to close Island Pond will strengthen the remaining Vermont facilities in Orleans, Beecher Falls, and Randolph. He added that he believes the company made the decision in order to compete in a global economy where companies are increasingly facing "pressure from off-shore."

Plant officials could not comment on how business at the Randolph plant compares to previous years. They also declined to comment on the company's decision to shut down the plant and lay off all workers for the first week of July—a move that some workers feel is disquieting.

Local officials said they had been told to refer all questions to Danbury headquarters, and Maicon had little to say beyond the press release.

D'Elia stated that there will be additional discussion next week between Vermont's Department of Economic Development and Ethan Allen officials.

By Josey Hastings