Law firm investigating potential WARN violation after furniture maker closes doors

By Larry Adams for Woodworking Network

 

Strauss Borrelli PLLC, a class action law firm, is investigating Kroehler Furniture Co. regarding its recent mass layoff in Conover, North Carolina. On December 30, 2025, Kroehler notified the North Carolina Department of Commerce of its decision to conduct a mass layoff at its facility in Conover. More than 200 workers were laid off two days later, on Dec. 31, 2025.

The Worker Adjustment and Retraining Notification or WARN Act is a federal law that requires certain employers to notify their employees, in writing, at least 60 days before a plant closing or mass layoff takes effect. “As a result, we [Strauss Borrelli PLLC] believe Kroehler Furniture Co. employees may be entitled to 60 days of severance pay and benefits.”

In a letter obTained by WSOC-TV, dated December 29, 2025, the company said operations at its plant located at 1800 Conover Blvd. E in Conover will end effective Wednesday, December 31, 2025. The short timeframe between the WARN notice filing and the plant shutdown was due to efforts by management to seek new capital or the potential sale of the business. Kroehler Furniture stated it believed early notice could have hurt those efforts and said notice was provided “as soon as was practicable.”

The company blamed the closure on a significant reduction in business. Kroehler is owned by American Signature Inc. (ASI), which operates American Signature Furniture and Value City Furniture brands. ASI filed for Chapter 11 bankruptcy in late 2025, leading to store closures and liquidation efforts for its various retail operations, and now, Kroehler, which made furniture for Value Furniture.

“It is expected that certain affected employees will remain employed for a limited time after the December 31, 2025, window to assist with administrative and business tasks related to the mass layoff. Other than these certain employees, the entire Facility is being closed,” Kroehler Furniture Co. stated in its letter.

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