Furniture manufacturer Ethan Allen Interiors Inc. will lay off approximately 325 workers at the manufacturing operation in Old Fort, North Carolina, just south of Pisgah National Forest.

The layoff marks the first step of Ethan Allen’s “optimization of manufacturing and logistics” initiation.

According to a release, the 550,000-square-foot plant will be converted into a “state-of-the-art distribution center” that will handle and support Ethan Allen’s “national distribution structure and growing U.S. government GSA contract business.”

The plant will maintain its lumber processing facility.

According to the Worker Adjustment and Retraining Notification filed with the North Carolina Department of Commerce, associates will be released from employment on or after June 15, 2019.

Employees affected by the manufacturing operation being converted will be allowed to apply for positions in the distribution division.

Following this conversion, all Ethan Allen U.S. case goods manufacturing operations will consolidate in Vermont, its distribution operations in New Jersey will move to North Carolina, and its art framing operations will be outsourced.

The company will also expand the U.S. upholstery manufacturing campus — which was previously consolidated to Maiden, North Carolina — with an investment of approximately $5 million.

“These decisions are not easy, especially as they affect approximately 325 of our associates in Old Fort, N.C. and 55 associates in Passaic, N.J.,” stated CEO Farooq Kathwari, “they leave a legacy of fine artisanry, safety, and manufacturing leadership.”

Ethan Allen stock closed Friday at $20.05, down approximately 1.5 percent from its $20.36 price at market open.

See the 2019 North Carolina WARN Act filing report here.