NC furniture maker resumes production nearly a year after closing with over 500 layoffs

Production of upholstered sofas, sectionals and chairs has begun again nearly a year after a North Carolina furniture company closed without warning, putting hundreds of people out of work.

Mitchell Gold + Bob Williams furniture production resumed Monday with 38 employees at its Taylorsville plant in Alexander County, owner Surya Inc. spokeswoman Parvati Tiwari told The Charlotte Observer on Tuesday. Taylorsville is about one hour north of Charlotte.

“We will continue to expand our team as operations grow,” Tiwari said.

Last Aug. 26, MG+BW workers were met with signs at the 1-million-square-foot Taylorsville plant saying the company was “unexpectedly” unable to continue business operations. MG+BW had been headquartered there since 1989.

NC community in shock, seeking answers after furniture maker’s abrupt closure

In all, 533 employees at MG+BW were laid off by the company, devastating the town of 2,320 residents . While the majority of employees worked in Taylorsville, two other facilities were in Statesville and Hiddenite.

But on Tuesday, Surya Inc. announced 50 MG+BW upholstered furniture pieces in more than 200 configurations are available to designers in a “pre-launch sale” before full production resumes in the fall. Surya, based in Cartersville, Georgia, purchased MG+BW in an undisclosed deal in November.

”This is only the beginning for MG+BW’s long-awaited revival,” Surya President Satya Tiwari said in a statement Tuesday.

The full relaunch of the MG+BW brand with the production and distribution will resume in the fall at all three North Carolina sites, Surya said Tuesday in a news release. Statesville and Hiddenite facilities will be used for warehousing, Parvati Tiwari said.

“Many former factory employees will be rehired,” Surya Inc. said.

The furniture plant’s reopening and rehiring employees is “great news,” said Josh Lail, chairman of the county Board of Commissioners. “MG+BW has been a cornerstone of our industrial sector for decades, and its revival is a big step toward continued economic growth in Alexander County,” Lail said.

Mitchell Gold, co-founder of MG+BW, is a company advisor. Furniture industry veteran Darryl Webster was hired this year as chief operating officer.

Behind MG+BW closure

MG+BW was unable to secure financing to continue operations as the furniture industry has had “significant challenges,” then company CEO Chris Moye said last year in WARN notices filed with the North Carolina Department of Commerce .

MG+BW parent company The Stephens Group and Mitchel Gold separately filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the District of Delaware on Aug. 30 and Sept. 6, respectively. Each cited $10 million to $50 million in assets and $10 million to $50 million in liabilities.

Following lender PNC Bank’s denial of funding, MG+BW stopped accepting customer deposits and online orders Aug. 25, the same day all Mitchell Gold’s stores, distribution centers, outlets and factories closed.

Furniture industry struggles

MG+BW isn’t alone in its struggles as the furniture industry grapples with changing consumer demand.

Just last week, Florida-based retailer Badcock Home Furniture & More announced on its social media sites that it is closing all of its 380 stores in eight Southeastern states, including eight stores in the Charlotte area. Last month, Badock’s parent company, Texas-based Conn’s, filed for Chapter 11 bankruptcy.

Last August, Asheboro-based Klaussner Furniture Industries Inc. said it was ceasing operations with nearly 900 job losses.

And in 2022, Ashley Furniture Furniture Industries permanently closed its Statesville facility, resulting in 111 layoffs, when the Wisconsin-based company consolidated operations.