B.P. John Relocation From Santa Ana Called Unlikely

B.P. John Furniture Co. of Santa Ana probably will not move here as planned because its owner, a subsidiary of El Paso Electric Co., is suffering cash-flow problems, officials of the utility said Thursday.

B.P. John probably will continue manufacturing in Santa Ana and not move to the Las Cruces West Mesa Industrial Park, said David H. Wiggs Jr., chief executive officer of El Paso Electric.

Larry Downum, vice president of the El Paso Electric Mesilla Valley division, said the move appears unlikely now “because of our current financial situation.”

“It would not be prudent to go ahead and involve ourselves in the expense of relocation when it would cost $10 million to $14 million to relocate the operation,” Downum said. “When you’re cash-poor, any amount is quite an amount. It’s going to be a while, certainly--who knows how long--before the cash position improves.”

Gov. Garrey Carruthers announced last July that the company would move to New Mexico and could have its new plant open by December, 1989. He had also said that the state would examine the possibility of contributing $15 million to help build the factory.

The company had expected to eventually employ as many as 658 people at the new plant, officials had said.

PasoTex Corp. acquired B.P. John in January, 1988. The company makes and distributes wooden tables, dining room and bedroom suites and is a leader in the water bed market. PasoTex bought the company as part of a strategy to bring more jobs to the area and to increase the utility’s rate-payers’ base.