US-based furniture producer Hooker Furniture has announced plans to close its Roanoke, VA, production facility by the end of August 2006.

According to a company statement, the decision to cease operations at the facility results from a continuing trend of decreased order and shipment rates for the company's domestically produced furniture.

The 265,000 square foot plant employs approximately 275 employees, representing 20% of the company's total workforce, and produces home office and home entertainment furniture.

The company expects to reduce fixed operating expenses by $2 to $2.5 million annually by closing the Roanoke facility. In connection with the closing of that facility, Hooker expects to record restructuring and related asset impairment charges of $4.5 to $5 million pretax to write-down certain assets at that facility, for severance benefits to be paid to terminated employees and other restructuring expenses.

The company currently operates four manufacturing facilities, two supply plants, six distribution centres and warehouses, four showrooms and a corporate office in Virginia and North Carolina.