ASHEBORO, N.C. (WGHP) — Klaussner Home Furnishings, based in Asheboro, began the process of shutting down operations on Monday.

The company released the following statement to employees on Monday:

As the result of challenging and unexpected business circumstances impacting our operations, Klaussner Furniture Industries, Inc. and its direct and indirect subsidiaries (“Klaussner” or the “Company”) must unexpectedly wind down the operations.

Klaussner’s lending source has 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.

Klaussner anticipates closing all of its facilities entirely, and that process is underway as of today, August 7, 2023.

Klaussner is working to provide information and resources to assist with next steps for displaced employees as it becomes available. This information will be communicated directly to employees via the contact information we have on file.

–Klaussner Furniture Industries, Inc.

“There’s a lot of people that depend on that paycheck, and now they’re done,” said Jason Rich, a former employee. “I was kicked to the ground … I’ve been promised more money. They said we’re getting better equipment, and now the doors are closed.”

Rich worked for the company for almost two years. He says he heard rumors about the layoffs a month ago. 

“You could see some disturbance in the offices and stuff, and I heard from other associates that … this was a matter of time … People were cleaning out personal items and stuff like that … I was like, ‘Well, maybe we can make it at least this week?” Rich said.

Asheboro’s mayor, David Smith, says the company’s decision to shut down operations came as a surprise.

“It has provided a lot of jobs for people over the years. Stable jobs. Reasonably good paying manufacturing jobs. Even if you didn’t have a lot of experience,” Smith said. “We’re disappointed … The city of Asheboro and and all of the citizens of Randolph are disappointed.”

Launched in 1963, the company has five North Carolina manufacturing campuses with a corporate headquarters located in Asheboro. According to Klaussner, more than 70% of its products were manufactured at these locations.

Klaussner Home Furnishings describes itself as “the leading solutions provider to the furniture industry. Our mission is simple: to provide value-driven product, constant innovation, speed-to- market and total customer satisfaction.”

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RLF Communications issued a statement on behalf of Klaussner on Monday morning but did not confirm the planned closure.

“We do not have any additional information to share at this time regarding the Klaussner facility in Asheboro. Thank you for reaching out to us, we do appreciate it,” RLF Communications said.

The North Carolina Department of Commerce said Monday morning that the department had not received a Worker Adjustment and Retraining Notification from the company as of 10 a.m. Monday morning.