SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 7, 1998
STANLEY FURNITURE COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-14938 54-1272589
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
1641 Fairystone Park Highway, Stanleytown, Virginia 24168
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (540) 627-2000
- -------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
ITEM 5. OTHER EVENTS
On August 7, 1998, the Registrant issued a press release announcing the
phase out of its upholstered product line. The press release is attached hereto
as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The following exhibits are filed as a part of this report.
99.1 Press release dated August 7, 1998.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
STANLEY FURNITURE COMPANY, INC.
August 7, 1998 By: /s/Albert L. Prillaman
Date Albert L. Prillaman
President, Chief Executive
Officer, And Chairman of the
Board
EXHIBIT 99.1
FOR IMMEDIATE RELEASE: CONTACT:
August 7, 1998 DOUGLAS I. PAYNE
Sr. V.P. - Finance and Administration
(540) 627-2157
e-mail:[email protected]
ROBIN CAMPBELL
Manager Advertising/Marketing
(540) 627-2245
e-mail:[email protected]
Stanley Furniture Company to Concentrate on Wood Furniture,
Phase Out Upholstered Products
STANLEYTOWN, VA., August 7, 1998/PRNewswire/ -- Stanley Furniture Company, Inc.
(Nasdaq-NNM:STLY) announced today plans to phase out its upholstered product
line. This will allow the company to focus all its resources on its rapidly
growing residential wood furniture business. Sales of upholstered products
accounted for only three percent of Stanley's sales for the first half of the
year. The company anticipates the financial impact from the phase out of these
products will not be material.
"Since we have not experienced the sales growth in upholstery we anticipated and
the product line continues to operate at a loss, we believe it is in the best
interest of the company, our associates, our shareholders and our customers to
concentrate on our core residential wood furniture business," said Albert L.
Prillaman, chairman, president and chief executive officer. "Our residential
wood furniture sales are up 20 percent this year and we plan to take advantage
of the potential growth in this market."
The company will close its Lexington, NC upholstery department in about 60 days.
Approximately 70 employees will be affected when the department shuts down after
completing customer orders. "This is a high-quality workforce with specialized
skills whose employment opportunities should be quite good in the Lexington
area. We will offer as much outplacement assistance as possible," Prillaman
said.
Upholstery operates in a shared facility which is expected to be utilized in the
company's continued expansion of its wood furniture business. Stanley's wood
furniture plant in Lexington will not be affected by the upholstery department
closure.
Established in 1924, Stanley Furniture Company, Inc. is a leading manufacturer
of furniture targeted at the upper-medium price range of the residential market.
Manufacturing facilities are located in Stanleytown, VA, and Robbinsville,
Lexington, and West End, NC. Its stock trades on NASDAQ under the symbol STLY.
STANLEY TO PHASE OUT UPHOLSTERY, page 2 of 2.
Certain statements made in this release are not based on historical facts, but
are forward-looking statements. These statements can be identified by the use of
forward-looking terminology such as "believes," "expects," "may," "will,"
"should," or "anticipates" or the negative thereof or other variations thereon
or comparable terminology. These statements reflect the Company's reasonable
judgment with respect to future events and are subject to risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking statements. Such risks and uncertainties include the
cyclical nature of the furniture industry, fluctuations in the price for lumber
which is the most significant raw material used by the Company, competition in
the furniture industry, capital costs and general economic conditions.
Visit Stanley Furniture on the World Wide Web at www.stanleyfurniture.com
