To facilitate a major ready-to-assemble product push, as featured in the HomeWorld Business September 9 issue, Ashley Furniture Industries has acquired the Homestar North America facility in Statesville, NC.
Ashley noted that it envisioned the 309,620-square-foot facility producing over 500 SKUs, including bedroom, entertainment, upholstered bed, occasional tables and home office furniture, to help drive its RTA initiative.
The new RTA furniture operations will help Ashley diversify its product offering with additional lower pricepoint products, the company stated, those supported by a packaging system geared around a timelier customer delivery process.
The Statesville plant location is less than 40 miles away from Ashley’s Mid-Atlantic manufacturing and distribution facility in Advance, NC. It has generated over $50 million in annual sales, Ashley pointed out, and provides excellent expansion capability to produce additional RTA products and grow facility revenue.
The new RTA product line it will help produce will be contemporary in design, which Ashley maintained would give it appeal to today’s first time renters and home buyers.
“This is a major investment by our company, and one we feel will allow us to better serve our customers worldwide,” said Todd Wanek, Ashley president and CEO. “As an industry, we’re starting to see more people live in urban spaces. The production of RTA furniture allows the product to be easily navigated into these spaces and assembled at the point of use. We are excited to grow the RTA assortment and provide proven products to our customers. By December, we will expand the RTA product to all of our U.S. distribution centers and will be well-positioned to supply the products to our customers.”