On December 29, 2025, the normally busy Kroehler Furniture factory in Conover, North Carolina, fell silent. That day, 208 workers were told their jobs would end in just two days. The announcement arrived as most people were preparing for New Year’s Eve, leaving little time for employees to adjust or plan their next steps. The century-old Kroehler brand, known for making furniture for American homes, became the latest casualty in a challenging year for the U.S. furniture industry.
Workers learned the news through a federal WARN letter, which legally requires most companies to give 60 days’ notice before large layoffs. Kroehler’s letter, however, came only two days ahead of the shutdown. Company officials said they delayed the notice to protect ongoing business deals. That decision is now under review by labor authorities, who are examining whether the short notice violated federal law. Since the Conover plant had no labor union, employees had little power to push back or negotiate any severance pay. Many left with only the hope that the company’s bankruptcy process might eventually bring some compensation.
A Legacy Brand in a Changing Market
Kroehler Furniture began in 1893 and spent more than a century as a trusted American brand. The Conover plant, which had operated for 40 years, was a cornerstone of the local economy, employing hundreds of residents and supporting families across Catawba County. But in recent years, the company struggled to keep up with fast-changing consumer tastes and global competition. Many shoppers had shifted to buying furniture online, often opting for cheaper imports rather than domestically made products.
By late 2025, Kroehler found itself squeezed by rising costs and limited demand. The brand once associated with American craftsmanship could no longer compete with international manufacturers offering lower prices. Its parent company, American Signature Inc., entered bankruptcy in November 2025, setting off a wave of store closures and layoffs nationwide. The Conover facility, once a symbol of steady employment and local pride, was among the first to close when no buyer stepped forward to keep it open.
Industry Struggles and Cost Pressures
The fall of Kroehler’s Conover plant is part of a much larger story. North Carolina’s furniture industry, once a national leader, has been shrinking for decades. Since 1993, manufacturing employment in the state’s furniture sector has dropped nearly 60%. Many companies have moved production overseas to reduce costs and stay competitive. Tariffs on imported materials like steel and lumber have only made the situation harder for firms still based in the U.S., increasing input costs by about 25–30% in recent years.
At the same time, the housing market, closely tied to furniture sales, has been slowing down. When fewer people buy homes or renovate, fewer buy new furniture, too. In September 2025, national home furnishings sales dipped, hinting at deeper weaknesses in the market. That slowdown hit producers like Kroehler especially hard. With pressure coming from both rising expenses and falling demand, even established companies found survival nearly impossible without major restructuring.
Community Impact and Uncertain Futures
The plant’s closure is deeply felt across Catawba County, a region once filled with furniture makers. The loss of Kroehler’s payroll, worth millions each year, ripples through the community, affecting small businesses, local schools, and public services that relied on the plant’s economic activity. The employees who lost their jobs ranged in age from 18 to 87. Some had worked at the facility for decades; one veteran in his mid-80s had spent more than 60 years in the business and learned of the layoffs only days before they took effect.
In response, state officials have launched programs like NC Rapid Response and NCWorks Online to connect workers with retraining and new job opportunities. These resources aim to soften the blow and help displaced employees transition into other industries. Still, experts warn that recovery will be difficult. With manufacturing jobs continuing to decline and international competition remaining fierce, there may not be enough comparable work nearby to absorb all the affected workers.
As American Signature’s bankruptcy case moves forward, legal and financial questions remain about the company’s obligations to former employees. Meanwhile, Conover and the broader furniture region of North Carolina face an uncertain road ahead. The closure of Kroehler’s plant is more than just a local job loss, it reflects the ongoing transformation of an industry long tied to American identity. For the workers who built its furniture and the towns that grew around its factories, the silence on the factory floor marks not just an ending, but a sign of how much the world of manufacturing has changed.
Sources:
“Long-standing furniture maker to end operations, leaving 300 jobless.” WSOC-TV, 29 Dec 2025.
“American Signature files for bankruptcy amid furniture sales slump.” Reuters, 24 Nov 2025.
“Sales at home furnishings stores ticked up a bit in September.” Home Textiles Today, 8 Oct 2025.
“Founded in 1893, Kroehler Furniture closes doors as 2025 ends.” Woodworking Network, 31 Dec 2025.