County's second largest company to shut down most operations
By Kevin Schnepp Staff writer

Approximately 150 employees of Peters-Revington Furniture in Delphi learned Monday they will lose their jobs at the end of May. Carroll County's second largest employer announced Monday in a press release from parent company Chromcraft Revington Inc. it will stop production of wood furniture products at the Delphi plant May 30. The loss in jobs represents an approximate 80 percent drop in the Delphi plant's employment.

The release stated the decision was made due to restructuring activities and decreased sales. The Delphi plant will still employ a few individuals as a warehouse and distribution center.

Peters-Revington employee Cheryl Dubes told the Comet Monday workers received the news as they returned to work Monday morning.

Peters-Revington held a meeting for employees Monday afternoon. Dubes said they were given details and provided options to help prepare for future employment. Workers were offered training specifically designed for employees of production facilities that are closed. A job fair also may be held at the facility. Employees were told those who continued to work until the plant closed would receive two weeks' pay as a thank you.

Dubes said she had hoped the company would see the benefits of the plant and choose not to close its production line.

"It is my understanding this was the only plant to make a profit for the company last year," Dubes said. "We like our jobs and were happy to have them. We could tell it was coming. We just didn't know when."

Dubes said signs of the plant's imminent closure became more evident in recent years. Workers did not receive cost-of-living or other raises in the past four to five years. No profitsharing checks were paid this year either.

"We were told there was no money for us," she explained.

Dubes said Anderson-Ray was different than previous company leaders in that he rarely visited the Delphi plant. She explained CEOs before him would visit more often and even know employees by name.

"I've only seen (Anderson-Ray) here two or three times since he took over about four years ago," Dubes stated. "It used to be about people. When he took over, it was all about business and competition."

According to the Carroll County Auditor's Office, Peters-Revington paid real estate property taxes and personal property business taxes totaling $243,614.30 in 2007. The amount was distributed by formula to the county, the City of Delphi and other governmental entities.

The company also pays income taxes. Information regarding the amount paid in 2007 was not available at press time.

Delphi Mayor Randy Strasser said Tuesday the loss was "not light" for the community.

"We've seen some dark days here," he said. "People are out of jobs."

Strasser said the city would be affected financially by the loss, but was not sure to what extent.

"We don't know exactly what financial impact it will have," he explained. "We will lose revenue by not providing as much utility service to the plant. Depending on where the plant's employees who live in Delphi find work, we might lose some of them and the revenue they create. The company was also a big provider to several community groups."

Strasser said though the situation was difficult for the city and its residents, he was still upbeat about the future.

"Perhaps it is hard to understand, but we are still positive that good things are going to happen for us," he added. "We knew from the time the company asked for tax abatements a few years ago it was possible the plant would close," he added. "They were no less susceptible to the global market than any other high-risk business. What is important is that Delphi remains focused on its goals for growth and development."

"The resilience of this community during hard times is unbelievable," he concluded. "We cannot simply focus on the negative. When other companies show interest in Delphi, they will see that when we are handed lemons, we make lemonade."

Delphi Chamber of Commerce President Krista Watson said she knew the company was considering downsizing locally since she met with Peters- Revington leadership about a year ago. She said she was told the company would do what they could to remain in the area, but consumer interests forced them to make the changes.

Watson said though it was distressing to see P&R and other businesses scale back or close, it was important to continue to strive for success.

"The point is we must keep our focus," she explained. "Any time we lose traffic it affects many others locally, but we have to go after it and mold the future to what we need."

Watson said one way residents can help retain local businesses is to shop at them.

"The Delphi Chamber will continue to encourage businesses to support each other," she concluded. "And we encourage the community to support its local businesses."

Carroll County Chamber of Commerce Executive Director Sana Booker said Peters- Revington was an "excellent company that provided local revenue for more than 60 years" whose name was "known all over." She said the county lost a sense of security and a bit of history, but not all was gone.

"Right now is bad and difficult," she said. "But I have every faith we will stand and make progress. We may not know exactly what to do today, but we are actively trying to help."

Booker said the county chamber was available to help displaced employees find help and resources as they searched for new jobs. She explained the chamber could assist workers who need to make connections to other businesses, even in surrounding counties.

"We are ready and willing to help," she said. "There are many resources from which we can get assistance. It's as simple as a phone call for those who need help."

Those in need of such assistance from the county chamber should call (765) 564-6757.

During the past 18 months Chromcraft Revington closed and sold facilities in South Carolina, North Carolina and Tennessee. Chromcraft Revington CEO and Chairman Ben Anderson Ray said those closures and the downsized local facility were planned as part of the company's new global strategy.

Anderson-Ray explained the company was in the process of transitioning its operating and organizational models. The company will seek greater use of global sourcing and shift its U.S.-based operations toward built-to-order customization and distribution logistics.

The release stated the company anticipated it would sell the site's manufacturing equipment during its conversion to a warehouse and distribution center.

"The purposes of this restructuring are to improve the utilization of the global supply chain, enhance competitiveness, improve operating margins, reduce fixed costs and re-deploy assets," the release stated. "This action is consistent with the company's previously reported transformation of its business model, which includes the reduction of its reliance on U.S. manufacturing by shifting its business toward the use of the global supply chain and progressively outsourcing existing furniture lines."

Anderson-Ray said nearly half of recent shipments from the Delphi plant were imported products. He added the decision to shift the balance of products to global suppliers, and effectively close the Delphi factory, was "the next logical step" to achieve the company's stated strategy and enhance its competitiveness.