SENATOBIA — 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.”
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info