Dorel to close Ameriwood plant in Michigan

Furniture Today,
DOWAGIAC, Mich. — Dorel Inds., parent company of ready-to-assemble furniture producer Ameriwood, said it will stop production at Ameriwood’s factory here in mid-July.
The move will result in the layoff of 170 of the plant’s 215 employees, said Martin Schwartz, Dorel president and CEO.


“While we remain convinced that there will be sustained demand for domestically manufactured RTA furniture, we have concluded that … our manufacturing footprint exceeds anticipated market needs,” Schwartz said during Dorel’s annual shareholders meeting in Montreal.
The shutdown will leave Ameriwood with factories in Cornwall, Ontario, and Tiffin, Ohio, as well as an import program.
“We believe this will ensure the long term viability of our domestic operations and speed Ameriwood’s profitability growth,” said Schwartz.
Dorel, whose shares are traded on the Toronto Stock Exchange, will take a pretax restructuring charge of about C$11 million as a result of the shutdown.