Ethan Allen announces closure of Vermont plant

RANDOLPH, Vt. – Ethan Allen Interiors Inc. will close its factory and lay off 154 employees, company officials said Tuesday.

The shutdown will occur in approximately two months, according to Julie Logan, a spokeswoman at Ethan Allen’s corporate headquarters in Danbury, Conn.

The company also will close its lumber operations at its Orleans factory. The move will result in an estimated 69 layoffs at that plant, which employs more than 500 people.

Chairman and Chief Executive Farooq Kathwari said in a news release that the consolidation is necessary to focus the company’s manufacturing “in the most suitable plants in the U.S.”

“During the last few years, we have made substantial capital investments in many of our plants in the U.S., including our operations in Vermont and Maine,” Kathwari said.

“We believe this consolidation will strengthen our remaining 17 manufacturing facilities in the U.S. and gives us the opportunity to manufacture our products more competitively.”

Logan said laid-off employees will receive a severance package, and a few positions will be available at the company’s other Vermont plant in Beecher Falls.