Frank Chervan closing majority of Bedford plant

Frank Chervan, Inc. News Release
Published: December 3, 2008

Company News Release:

Frank Chervan, Inc. announced the closure of several operating units located in its Bedford, Virginia Plant.  The company today notified approximately 90 affected workers that operations will be closed in early February.  The company will still operate a rough lumber mill in Bedford that will likely employ approximately 30 people.

Addressing the decision to close the majority of the Bedford plant, company President Greg Terrill says “This was one of the toughest decisions we have had to make.  While we have grown rapidly over the past few years, rising costs of employment and particularly extreme health care costs have forced us to refocus and rescale the business.  In order to preserve our core business and grow in the future we have to make the tough choices now.”

Chervan is now headquartered in Roanoke, Virginia.  The company is over 80 years old and has focused on the business of contract manufacturing of wood and upholstered seating.  As a supplier to the health care, office, hospitality and residential furniture industries, Chervan has grown in spite of industry challenges.  However rapidly rising health care costs and turmoil in financial markets have made the recent operating environment particularly challenging.

According to Terrill, “One of the largest markets we serve is for seating in major banks and financial institutions.  These end users of our products have been particularly hard hit by the financial crisis and we need to position ourselves to weather a projected significant downturn next year.” 

The company has had long standing close ties with the community of Bedford.  Chervan, which started in Ohio first located a plant in Bedford nearly 60 years ago.  According to the Bedford Plant Manager, Chad Eckart “The Bedford plant is a close knit group of people that are hardworking, dedicated and committed to building high quality products.  The industry will miss the craftsmanship that so many of these people have demonstrated over the years.  Frank Chervan has succeeded over the years through their niche in the industry and their ability to compete on quality and fast service.  The changes in business, economy, and the furniture industry will leave the company with many challenges. The only option is to reduce expenses, survive the near term and position ourselves to resume growth as the economy improves.  All I can offer is a sad but special thanks to all the current and former employees that called the Bedford plant their work home.“

Chervan currently employs 210 people in total split between the Roanoke and Bedford plants.  Approximately 90 workers are affected by this shutdown in the Bedford, Virginia operations.  The company expects to offer many of the affected employees the chance to work in different positions in the Roanoke Virginia plant.