that there are over
1,500 manufacturers of all types of furniture in the United
States. Competition within the market for wood, metal and
upholstered furniture occurs principally in the areas of style or
design, quality, price, and service. Some of these include
manufacturers of furniture types not manufactured by the Company.
According to industry data, the Company believes it is the
fourth largest manufacturer of residential furniture in the
United States.
In recent years, foreign imports of finished furniture and
component parts have increased. Although some of the imported
products compete with products manufactured and marketed by the
Company, other than in its Daystrom Furniture operating division,
the Company has not experienced any significant negative impact.
Where appropriate, the Company has capitalized upon the cost
advantages of importing selected component parts and a limited
number of finished products but is not dependent upon anyproduction conducted at that plant. During fiscal
1993, the Company estimates that its plants operated at
approximately 80% of total capacity on an aggregate basis. In
addition, the Company owns three warehouse facilities aggregating
approximately 340,000 square feet and leases seven warehouse
facilities aggregating approximately 840,000 square feet. The
Company has one idle manufacturing facility located in Kenbridge,
VA which is held for sale. The Company's manufacturing
facilities are located in North Carolina, Alabama, Arkansas,
California, Mississippi, Pennsylvania, Ohio, South Carolina,
Tennessee, Virginia and Mexico. The Company leases its corporate
offices, which aggregate approximately 38,000 square feet, in
High Point, North Carolina.
The Company believes that its manufacturing, warehouse and
office space is well maintained for its intended purposes.
Although the closure of any particular Company facility may be
disruptive to that particular operating entity's business, it
would not be materially adverse to the Company's