Stanley to Eliminate 13% of Work Force

Stanley Furniture Co. said it will close a North Carolina plant and slash its work force by 13% as imports and the collapse of its largest customer force the manufacturer to cut costs.

Stanley, battered by the recession, also slashed its earnings outlook for the fourth quarter in half, though it reiterated earnings expectations for next year as the economy rebounds.

After five years of increasing imports, especially from Asia, and facing a drop-off in consumer demand, Stanley is the latest in the home furniture industry to restructure.

Shares of Stanley fell $2.50 to $23.39 on Nasdaq.