The factory floor fell silent on December 29, 2025, as workers were handed their notices just two days before New Year’s Eve. In a shocking move, Kroehler Furniture, a century-old brand, abruptly closed its doors, laying off 208 employees.
The timing couldn’t have been worse. As families began to prepare for the holidays, they found themselves suddenly without work—and with little time to adjust. What led to this sudden shutdown?
Abrupt WARN Notice
A mere two days before closure, Kroehler sent out a WARN letter to employees. The company bypassed the federal 60-day notice requirement, citing potential risks to business deals.
Workers were left scrambling, with many non-union employees facing uncertain futures. The fast pace left little time for preparation.
Furniture Legacy
Founded in 1893, Kroehler grew into a major player in America’s furniture market. The company, once a household name for sofas and recliners, has fallen victim to market pressures.
It has left behind a legacy of innovation and craftsmanship. What happened to this iconic brand that once thrived?
Industry Pressures Mount
The industry faced mounting challenges: declining real estate sales, inflation-driven labor costs, and tariffs. Sales dropped by 1.87% in September 2025, signaling deeper issues for North Carolina’s furniture sector.
The rise of imported goods and a shifting market put additional pressure on already-struggling companies like Kroehler.
Plant Closure Reveal
On December 31, 2025, Kroehler’s North Carolina plant closed for good, leaving 208 workers jobless. The closure stemmed from a Chapter 11 bankruptcy filing by the parent company, American Signature Inc.
This move marked the end of a 40-year run at the Conover facility, where millions in local payroll were lost overnight.
Local Economic Hit
The loss of Kroehler’s Conover plant has a profound effect on the local economy, wiping out millions in annual payroll.
Catawba County, once known for its furniture manufacturing, is now grappling with another blow to its already shrinking workforce. State officials work to assist the displaced workers, but recovery seems distant.
Worker Stories Emerge
For workers aged 18 to 87, the closure hit hard. Many were blindsided, with some having dedicated decades to the company.
One 86-year-old worker, a veteran in the furniture industry for over six decades, was left without notice until the final days. It was a painful end to a longstanding career.
Parent Bankruptcy Link
The bankruptcy filing by American Signature Inc. in late November triggered a chain of events that led to the Conover plant’s closure.
Despite efforts to restructure and sell off assets, the plant’s closure became inevitable. Over 3,000 jobs across the country were impacted as part of this restructuring effort.
Tariff Ripple Effects
Tariffs on raw materials like steel and lumber have raised production costs by 25-30%, further squeezing margins for furniture manufacturers in North Carolina.
With prices for furniture rising, the impact on local manufacturers like Kroehler has been severe. The shifting landscape of global trade has left the industry reeling.
Macro Decline Data
North Carolina’s furniture industry has seen a dramatic decline, with manufacturing jobs dropping by 59% since 1993. This is part of a larger trend affecting various sectors in the state, from textiles to apparel.
Offshoring and trade disruptions have left the once-thriving sector struggling to maintain relevance in a globalized market.
Bankruptcy Fallout Mini-Nugget
Legal scrutiny now surrounds Kroehler’s abrupt closure, with investigations into whether the company violated the WARN Act by failing to provide proper notice.
As the bankruptcy proceedings continue, the risk of lawsuits grows, especially as displaced workers are left without adequate severance or warning.
Worker Frustration Peaks
The sudden closure has left many workers frustrated and angry. Without a union to represent them, they had no recourse to protect their jobs.
The company’s lack of transparency has fueled anger among employees, especially those with years of service. The holiday timing only amplified the emotional toll.
Ownership Shifts Unfold
American Signature’s bankruptcy led to several closures across the company’s stores, with Kroehler’s plant the first casualty.
The company’s restructuring efforts aimed to cut costs and sell off assets, but Conover’s plant was unable to secure a buyer in time, signaling deeper struggles for the brand.
Aid Efforts Launch
As workers face a difficult future, state resources like NC Rapid Response and NCWorks Online have been activated to provide support.
While these resources aim to offer some assistance, experts remain skeptical about how quickly displaced workers can find new opportunities in a market still reeling from industry-wide disruptions.
Skepticism Lingers
Experts predict that North Carolina’s furniture sector will struggle to recover, with tariffs and ongoing trade issues keeping job growth stagnated.
The loss of Kroehler is just another chapter in the slow decline of an industry once at the heart of the state’s economy. Will this mark the beginning of further closures?
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.