When Klaussner Furniture unexpectedly shut down Monday, the company left almost 900 people in North Carolina without jobs.
Klaussner is a 60-year-old furniture manufacturer based in Asheboro, North Carolina. Monday was the last day for the company’s 884 employees.
In a short statement Monday, the company said its lender “unexpectedly refused to continue to fund the company’s operations.”
“This outcome was not reasonably foreseeable, but due to these unexpected circumstances, Klaussner can no longer sustain its operations. As a result, Klaussner has made the difficult decision to permanently cease operations and is providing as much notice as possible,” the company said.
“Klaussner anticipates closing all of its facilities entirely, and that process is underway as of today, August 7, 2023,” Klaussner said.
The furniture company is the second this month to lay off hundreds of people in North Carolina. Yellow, the trucking company, laid off tens of thousands of employees when it shut down earlier this month. That included almost 900 in North Carolina, according to data from the state Department of Commerce.
Klaussner’s statement did not give much information for its laid-off workers.
“Klaussner is working to provide information and resources to assist with next steps for displaced employees as it becomes available,” the company said.
But Randolph Community College Shah Ardalan said the community college is ready to step in and help the former Klaussner employees find jobs or get trained in new skills.
“We are ready and committed to supporting the employees who have been affected by the abrupt Klaussner Furniture closure,” Ardalan said. “The College has extensive resources and expertise to help these employees navigate this challenge.”
The services will be free for former Klaussner employees, said Ardalan, who took over as president of the college in May.
“We are in collaboration with other leaders and organizations to provide a more comprehensive solution but want to offer everything we can right now,” he said. “Our immediate focus is on career assessment and planning, short-term training, resumé writing, financial advising, emotional consultation and support, and a hiring event.”
Under the Worker Adjustment and Retraining Notification Act, companies are required to notify the state 60 days before laying off 50 or more workers.
North Carolina Commerce Department records show Klaussner filed its WARN Act notification with the state on Monday, the same day they began shuttering its facilities. The notice said employees would all be terminated as of Aug. 21.